
BLM fast-tracks ‘Green Chile’ pipeline construction review for New Mexico data center Project Jupiter
News ClipKiowa County Press·NM·5/10/2026
The Bureau of Land Management expedited its review for the 'Green Chile' pipeline, intended to fuel the Project Jupiter data center in New Mexico. However, the project faces significant hurdles including a denial of state land rights by the New Mexico State Land Office and formal challenges filed by environmental groups and FERC staff. Project Jupiter, which lists OpenAI and Oracle as customers, is pushing for immediate regulatory approval despite these roadblocks.
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Gov: Bureau of Land Management, BLM Las Cruces district office, U.S. Department of Interior, New Mexico State Land Office, Federal Energy Regulatory Commission, New Mexico State Historic Preservation Office, New Mexico environmental regulators
The Bureau of Land Management (BLM) has fast-tracked its review for the construction of the 'Green Chile' pipeline, which is designed to supply natural gas to the controversial Project Jupiter data center in New Mexico. The BLM's Las Cruces district office utilized emergency permitting powers adopted by the U.S. Department of Interior to shorten a federal environmental review from one year to 14 days, granting Dallas-based developer Energy Transfer, through its subsidiary Transwestern Pipeline Company, permission to build a 16-mile portion of the pipeline.
Despite this expedited federal approval, the nearly 18-mile pipeline project faces significant opposition and regulatory challenges. The New Mexico State Land Office previously denied rights for construction on state trust land, and the project still requires approval from the Federal Energy Regulatory Commission (FERC). Environmental groups, including the Sierra Club and the Center for Biological Diversity, along with FERC staff, filed formal challenges against the project in April, citing an incomplete application and a missing review from the New Mexico State Historic Preservation Office.
Project Jupiter customers, including Oracle, are urging FERC to extend a 30-day deadline for documentation submission to ensure the pipeline's completion by August, emphasizing that "time is of the essence." However, attorneys for the opposing environmental groups contend that FERC has no procedure for such an extension, arguing that the project now necessitates a more extensive review. Additionally, New Mexico environmental regulators have yet to weigh in on Project Jupiter's power generation plans, which recently shifted to include fuel cells in addition to gas pipelines, further complicating its future.