ONEOK Partners LP (NYSE: OKS) has completed the first phase of the Roadrunner Gas Transmission pipeline project in West Texas.
Roadrunner is a 200-mile pipeline connecting ONEOK Partners' existing WesTex natural gas pipeline system near Coyanosa, Texas, to a new international border-crossing connection at the US and Mexico border near San Elizario, Texas. The project is fully subscribed under 25-year firm fee-based commitments. The completed first phase provides 170 million cubic feet per day (MMcf/d) of capacity to markets in Mexico and El Paso, Texas.
The second phase, which will increase the pipeline's capacity to 570 MMcf/d, is currently under construction and is expected to be completed in the first quarter of 2017. The third and final phase of the project is expected to be completed in 2019 and will increase the total capacity on the pipeline to 640 MMcf/d.
The project is a 50-50 joint venture with Mexico City-based natural gas infrastructure company Fermaca and is estimated to cost $430–480 million, a decrease of $20 million from previously announced cost estimates.