ONEOK Partners and Fermaca to Construct an Export Natural Gas Pipeline from West Texas to México.
Project Will Expand the Partnership's Export Capabilities.
ONEOK Partners today announced that it has entered into a 50-50 joint venture with a subsidiary of Fermaca Infrastructure B.V. (Fermaca), a México City-based natural gas infrastructure company, to construct a pipeline that would transport natural gas from the Permian Basin in West Texas to México.
The Roadrunner Gas Transmission pipeline project extends from ONEOK Partners' ONEOK WesTex Transmission natural gas pipeline system at Coyanosa, Texas, west to a new international border-crossing connection at the U.S. and México border near San Elizario, Texas, where it will connect with Fermaca'sTarahumara Gas Pipeline.
"We are pleased to partner with Fermaca on this strategic pipeline project and about the opportunity to add to our extensive 36,000-mile integrated network of natural gas and natural gas liquids pipelines," said Terry K. Spencer, president and chief executive officer of ONEOK Partners.
The project, to be constructed in phases, includes approximately 200 miles of new, 30-inch diameter pipeline currently designed to transport up to 640 million cubic feet per day (MMcf/d) of natural gas, with up to 570 MMcf/d to be transported to México's growing markets.
The first phase of the pipeline project for 170 MMcf/d of available capacity is expected to be completed by the first quarter 2016. The second phase, which will increase the pipeline's available capacity to 570 MMcf/d, is expected to be completed in the first quarter 2017. The third and final phase of the project is expected to be completed in 2019 and will increase available capacity on the pipeline to 640 MMcf/d. ONEOK Partners will manage the construction of the project and will be the operator of the pipeline upon its completion. The estimated cost of the project is approximately $450 million to $500 million.