TULSA, Okla., April 1, 2015 /PRNewswire/ -- ONEOK Partners,
L.P. (NYSE: OKS) today announced that it has entered into a 50-50
joint venture with a subsidiary of Fermaca Infrastructure B.V.
(Fermaca), a Mexico City-based
natural gas infrastructure company, to construct a pipeline that
would transport natural gas from the Permian Basin in West Texas to Mexico.
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
Mexico border near San Elizario, Texas, where it will connect
with Fermaca's Tarahumara 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 Mexico's growing markets. Precedent Agreements
representing the initial design capacity have been executed with
the Comisión Federal de Electricidad (CFE), Mexico's national electric utility, and a
subsidiary of Fermaca. All transportation agreements will be firm
(take-or-pay) and have a term of 25 years. Roadrunner was fully
subscribed in its initial design through an open season process
that ran from Dec. 2, 2014, to
Dec. 26, 2014. Additional capacity
could become available through future expansions depending on the
demands of the market.
"ONEOK Partners' strategically integrated assets position us
well to provide this service to the CFE and the expanding natural
gas markets in Mexico. We look
forward to building a long-term, strategic relationship with the
CFE and to this project meeting the ongoing demand needs of the
large natural gas consumers in Mexico," added Spencer.
"We see Roadrunner as a gateway asset that will connect
Mexico's rapidly growing natural
gas markets with U.S. producers in the developing Permian Basin.
The pipeline will connect with ONEOK Partners' extensive existing
natural gas pipeline and storage infrastructure in Texas and create a platform for future
cross-border development opportunities. These integrated assets
also 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 and
helps CFE replace fuel oil-based power plants with natural
gas-fueled power plants, which are friendlier on the environment
and less expensive," concluded Spencer.
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.
"The signing of this joint venture agreement with ONEOK Partners
is another key step in Fermaca's plans to extend its network of gas
pipelines across Mexico and into
the U.S.," said Manuel Calvillo
Alvarez, chief operating officer and executive vice
president of Fermaca. "A confluence of factors, including ambitious
growth targets, a favorable regulatory and political framework, and
an abundance of planned projects mean that it is a great time to be
investing in the build-out of natural gas infrastructure in and
around Mexico. In ONEOK, we have
found a partner that recognizes the Mexican opportunity, and we
really look forward to working with them."
Fermaca, a leading gas infrastructure player in Mexico, develops, builds, owns and operates
pipelines and other related energy assets in the country. The
company's gas transportation customers include Mexico's largest energy companies. Its current
operating pipelines are capable of transporting 1.2 billion cubic
feet per day, which constitutes approximately 20 percent of
Mexico's natural gas supply.
ONEOK WesTex Transmission is an intrastate natural gas pipeline
system operating within Texas,
consisting of approximately 2,227 miles of pipeline. This project
is subject to receipt of customary governmental approvals.
EDITOR'S NOTE:
View a map showing the location of the Roadrunner Gas
Transmission pipeline project.
ONEOK Partners, L.P. (pronounced ONE-OAK) (NYSE: OKS) is one of
the largest publicly traded master limited partnerships in
the United States and is a leader
in the gathering, processing, storage and transportation of natural
gas in the U.S. and owns one of the nation's premier natural gas
liquids (NGL) systems, connecting NGL supply in the Mid-Continent,
Permian and Rocky Mountain regions with key market centers.
Its general partner is a wholly owned subsidiary of ONEOK, Inc.
(NYSE: OKE), a pure-play publicly traded general partner, which
owns 37.8 percent of the overall partnership interest, as of
Dec. 31, 2014.
For more information, visit the website at
www.oneokpartners.com.
For the latest news about ONEOK Partners, follow us on Twitter
@ONEOKPartners.
Some of the statements contained or incorporated in this news
release are forward-looking statements as defined under federal
securities laws. The forward-looking statements relate to the
proposed construction and capacity of the Roadrunner project and
related infrastructure, the schedule and costs to complete the
proposed project and related infrastructure, and potential future
cross-border development opportunities related to the proposed
project. These forward-looking statements are made in
reliance on the safe-harbor protections provided under federal
securities legislation and other applicable laws.
Forward-looking statements include the items identified in the
preceding paragraph, the information concerning possible or assumed
future results of our operations and other statements contained or
incorporated in this news release identified by words such as
"anticipate," "estimate," "expect," "project," "intend," "plan,"
"believe," "should," "goal," "forecast," "guidance," "could,"
"may," "potential," "scheduled," and other words and terms of
similar meaning.
You should not place undue reliance on forward-looking
statements. Known and unknown risks, uncertainties and other
factors may cause our actual results, performance or achievements
to be materially different from any future results, performance or
achievements expressed or implied by forward-looking statements.
Those factors may affect our operations, markets, products,
services and prices. These and other risks are described in greater
detail in Item 1A, Risk Factors, in our most recent Annual Report
on Form 10-K and in our other filings that we make with the
Securities and Exchange Commission (SEC), which are available via
the SEC's website at www.sec.gov. All forward-looking statements
attributable to us or persons acting on our behalf are expressly
qualified in their entirety by these factors. Any such
forward-looking statement speaks only as of the date on which such
statement is made, and, other than as required under securities
laws, we undertake no obligation to update publicly any
forward-looking statement whether as a result of new information,
subsequent events or change in circumstances, expectations or
otherwise.
Analyst
Contact:
|
T.D.
Eureste
|
|
918-588-7167
|
Media
Contact:
|
Stephanie
Higgins
|
|
918-591-5026
|
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SOURCE ONEOK Partners, L.P.