Tulsa-based ONEOK Partners says it has completed the first phase of construction of its nearly $480 million Roadrunner Gas Transmission pipeline project in the Permian Basin of west Texas.
The 200-mile pipeline connects ONEOK Partners’ WesTex natural gas pipeline system near Coyanosa, Texas to the new international border-crossing connection at the U.S. and Mexican border near San Elizario, Texas. Coyanosa is a small town located in far southwest Texas just above the Big Bend region of the state.
“The addition of Roadrunner to our extensive natural gas pipeline infrastructure in West Texas positions ONEOK Partners to serve Mexico’s rapidly expanding natural gas markets by connecting them with U.S. producers in the Permian Basin,” explained Terry Spencer, President and CEO. “This project is a good example of our commitment to grow stable, long-term, fee-based earnings for the partnership.”
The just-finished first phase will provide 170 million cubic feet a day of capacity to the markets in Mexico and El Paso, Texas. Once phase two is completed, it will increase the pipeline’s capacity to 570 million cubic feet a day. Phase two is already under construction and should be completed in one year. A third and final phase is expected to be concluded in 2019 and will increase total pipeline capacity to 640 millino cubic feet per day.
Fermaca, a Mexico City-based natural gas infrastructure company is in a 50-50 joint venture with ONEOK. Original cost estimates were more than $500 million but the company says the cost has been lowered by nearly $20 million because of lower material and labor costs.
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