• 3 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 7 minutes Saudi and UAE pressure to get US support for Oil quotas is reportedly on..
  • 11 minutes China devalues currency to lower prices to address new tariffs. But doesn't help. Here is why. . . .
  • 15 minutes What is your current outlook as a day trader for WTI
  • 4 hours Will Uncle Sam Step Up and Cut Production
  • 51 mins In The Bright Of New Administration Rules: Immigrants as Economic Contributors
  • 2 mins Long Range Attack On Saudi Oil Field Ends War On Yemen
  • 10 hours Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 10 hours Gretta Thunbergs zero carbon voyage carbon foot print of carbon fibre manufacture
  • 1 hour * 8 to 10 "good" years left in oil industry * UAE model for Economic Deversification * Others spent oil billions on terrorism, wars, lopping off heads * Too late now
  • 4 hours CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 15 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 10 hours Continental Resource's Hamm wants shale to cut production. . . He can't compete with peers.
  • 23 hours Why Oil is Falling (including conspiracy theories and other fun stuff)
  • 23 hours Significant: Boeing Delays Delivery Of Ultra-Long-Range Version Of 777X
  • 13 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 5 hours US Petroleum Demand Strongest Since 2007
Alt Text

Has US Shale Gas Production Peaked?

Problems are mounting for U.S.…

Alt Text

Gas Flaring “Running Rampant” In The Permian

Gas flaring in the Permian…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Another Major Player Just Signed Onto Mexican Natgas Exports

That's ONEOK Partners. Specialist operator of a 36,000-mile pipeline network for natural gas and liquids across the southern U.S.

This week, ONEOK said it has struck a joint-venture deal to add one more pipeline project to its portfolio -- a 200-mile line to carry natural gas from the Permian Basin of Texas to the Mexican border. Related: Why The Oil Price Collapse Is U.S. Shale’s Fault

The pipeline is being advanced in partnership with Mexican midstream operator Fermaca Infrastructure. Owner of the Tarahumara gas pipeline, which spans northern Mexico to the border crossing near the town of San Elizario, Texas.

The planned ONEOK/Fermaca pipeline will connect Texas natgas to Fermaca's Mexican network. And a lot of it -- with the line expected to carry up to 570 million cubic feet per day of natgas for export into Mexican markets. Related: This Nation Could Host The Next Latin American Offshore Boom

That would make the ONEOK/Fermaca project the second-largest export pipeline on the U.S. side of the border. Adding significantly to overall takeaway capacity from southern U.S. natural gas plays.

Importantly, ONEOK said that all of the initial design capacity for the pipeline has already been contracted for delivery to Mexico's national electric utility, Comision Federal de Electricidad, and a subsidiary of Fermaca. With those parties committing to take-or-pay purchase contracts for a period of 25 years. Related: Media Spin On Oil Prices Running Out Of Fuel

And it won't take long for the project to start contributing to U.S. natgas demand. With the first phase of 170 million cubic feet per day expected to be operational in the first quarter of 2016. With capacity then expected to jump to 570 million cubic feet per day by the first quarter of 2017.

All of which is another signal that exports to Mexico are becoming a big part of the U.S. natural gas story. Which may put pressure on supply and prices, sooner than many observers are anticipating. Watch the supply-demand figures over the coming months as more export pipelines come online.

Here's to finding a market,

Dave Forest

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play