BLM Approves 220-Mile Gas-to-Water Pipeline Conversion in California
The Bureau of Land Management has approved the conversion of a 220-mile former natural gas pipeline in California into a water conveyance system, allowing construction on the Cadiz Northern Pipeline project to begin.
(P&GJ) — The U.S. Bureau of Land Management (BLM) has approved a right-of-way allowing Cadiz Inc. to convert a 220-mile former natural gas pipeline in California into a water conveyance system, clearing the way for construction to begin.
The approval authorizes conversion and long-term operation of the Cadiz Northern Pipeline, which was acquired from El Paso Natural Gas in 2020 and will transport water from the Mojave Groundwater Bank to communities in San Bernardino County.
The new right-of-way, issued under the Federal Land Policy and Management Act, replaces the pipeline's previous authorization under the Mineral Leasing Act and allows the pipeline to operate as water infrastructure across BLM-managed lands for up to 50 years.
Cadiz Chair and Chief Executive Officer Susan Kennedy said the approval marks the transition from permitting to construction.
"After many years of planning and environmental review, the project is now ready to begin the construction stage," Kennedy said.
The pipeline will deliver up to 25,000 acre-feet of water annually, with capacity to expand as additional Mojave Groundwater Bank facilities are developed.
Cadiz completed the acquisition of the existing buried steel pipeline from El Paso Natural Gas in 2020. The company formed the Fenner Gap Mutual Water Company to own and operate the converted system and applied last year for federal approval to change the pipeline's use from natural gas transportation to water conveyance.
The project is supported by long-term water supply agreements signed in 2024 with public water agencies and investor-owned utilities.
Kennedy said the approval also advances financing efforts for the project.
"With long-term offtake agreements and construction contracts in place, this federal permit marks a key milestone as we finalize project financing with prospective investors," she said.
According to Cadiz, the converted pipeline will transport groundwater from the Mojave Groundwater Bank to California's High Desert and Inland Empire, providing an additional long-term water supply for communities in the region.