ONEOK Partners to further expand Texas pipeline capacity

The ONEOK WesTex expansion project, located in the Texas Panhandle and the Permian Basin in West Texas, includes the construction of two new compressor stations and upgrades or expansions to three existing compressor stations.

ONEOK WesTex Transmission is an intrastate natural gas pipeline system operating within Texas, consisting of approximately 3,584 km of pipeline. This project is subject to receipt of customary governmental approvals.

ONEOK WesTex, which had qualifying open season bids in excess of 500 MMcf/d, will utilize 240 MMcf/d of existing capacity and create additional capacity by expanding its system by 260 MMcf/d.

CFE named as anchor shipper

The ComisiÌ_n Federal de Electricidad (CFE), Mexico’s national electric utility, has agreed to be the anchor shipper and has subscribed to firm capacity (take-or-pay) for a 25-year term. CFE generates, distributes and markets electric power for almost 35.3 million customers in Mexico.

According to the CFE, this long-term transportation position supports CFE’s strategy to bring natural gas to Mexico, which is a cleaner and less expensive fuel alternative for power generation in Mexico.

The capacity is available in two phases. The first phase of capacity is approximately 100 MMcf/d and will be available in the first quarter 2016. The second phase of capacity is approximately 400 MMcf/d and will be available in the first quarter 2017.

Roadrunner Gas Transmission Pipeline Project

“This expansion project is complementary to our recently announced Roadrunner Gas Transmission Pipeline Project. These integrated assets will provide markets in Mexico access to upstream supply basins in West Texas and the Mid-Continent, which adds location and price diversity to their supply mix,” said
ONEOK Partners President and CEO Terry K. Spencer.

The Roadrunner Gas Transmission Pipeline Project is a 50-50 joint venture with a subsidiary of Fermaca Infrastructure B.V. (Fermaca), a Mexico City-based natural gas infrastructure company that will transport natural gas from the Permian Basin in West Texas to Mexico.

It includes approximately 320 km of new, 30 inch diameter pipeline currently designed to transport up to 640 MMcf/d of natural gas, with up to 570 MMcf/d to be transported to Mexico’s growing markets.

The pipeline will extend from ONEOK WesTex’s natural gas pipeline system at Coyanosa, Texas, west to a new international border crossing connection at the US and Mexico border near San Elizario, Texas.

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