Invenergy Signs Major Agreement With Tallgrass To Secure Natural Gas For Up To Three New Arizona Power Plants

Invenergy, North America’s largest privately held independent power producer and energy infrastructure innovator, has announced that it has signed a precedent agreement with a subsidiary of Tallgrass. Through this agreement, Invenergy will serve as the anchor shipper on new natural gas infrastructure that will support its plans to develop up to three new natural gas-fired power plants in Maricopa County and Yuma County.

Daniel Runyan, Invenergy’s Senior Vice President for Development, explained that the company has spent 25 years— including a decade in Arizona—working closely with local communities to deliver projects that support both energy needs and economic development. With Arizona’s electricity demand continuing to rise, he emphasized that natural gas remains essential for keeping power reliable and affordable. He noted that the agreement with Tallgrass to secure long-term natural gas supply demonstrates Invenergy’s ongoing commitment to the state, its customers and the local communities it serves.

Arizona’s energy demand is projected to increase by more than 40 percent by 2031. This surge is driven by population growth, new manufacturing, data centers, electrification and expanding artificial intelligence applications. Although natural gas will play a key role in meeting this demand, Arizona currently faces supply challenges due to limited interstate natural gas pipeline capacity. Strengthening the supply system is therefore necessary to ensure the state can continue supporting its rapidly expanding economy.

According to Adam Schiche, Vice President for Business Development at Tallgrass, both natural gas and renewable energy resources are critical to delivering low-cost power and helping the United States stay competitive in the global race to develop AI technologies. He stated that Tallgrass is proud to partner with Invenergy to provide the energy needed to support the infrastructure powering these next-generation technologies.

The natural gas infrastructure being developed by Tallgrass will deliver fuel directly to Invenergy’s planned facilities. This coordinated design will help ensure that the power generated is specifically geared toward advanced manufacturing operations and other emerging technologies. The partnership aims to enhance the region’s energy reliability at a time when industries increasingly rely on large-scale, stable power supplies.

Local leaders also highlighted the importance of this investment for the region. Greg LaVann, President and CEO of The Greater Yuma Economic Development Corporation, noted that energy resiliency and redundancy form the basis of a strong, modern economy. He said that this partnership demonstrates that the greater Yuma region is becoming an attractive destination for companies needing large-scale, dependable energy for production. He also emphasized that the area’s pro-business environment and strong utility resources— including water, fiber and electricity—will only become more robust with this new infrastructure.

Jonathan Lines, Vice Chairman of the Yuma County Board of Supervisors, added that Yuma County’s continued growth is placing increasing pressure on existing energy and infrastructure systems. Investments that address supply challenges and improve energy reliability, he said, will be essential for supporting economic development and meeting the needs of a growing population.

Together, Invenergy’s planned power facilities and Tallgrass’s natural gas infrastructure represent a significant step forward in strengthening Arizona’s energy system. The partnership aims to support the state’s long-term economic expansion while ensuring that businesses and communities have access to reliable, affordable energy as demand continues to rise.