Oneok Inc. continues to be concentrating on a closing funding resolution (FID) by mid-year on the proposed 2.8 Bcf/d Saguaro Connector pure gasoline pipeline, which might transport pure gasoline from the Waha hub in West Texas to the Mexico border.
The pipeline, if sanctioned, would serve the Saguaro LNG export terminal proposed by Mexico Pacific Ltd. LLC (MPL), which additionally has but to succeed in FID.
“We proceed to guage the Saguaro Connector pipeline, a possible intrastate pipeline challenge that would supply pure gasoline transportation to the U.S. and Mexico border, for final supply to an export facility on the West Coast of Mexico,” mentioned Oneok Chief Industrial Officer Kevin Burdick in the course of the first quarter 2023 earnings name on Wednesday (Could 3). “There proceed to be constructive developments associated to the potential LNG export challenge, and we nonetheless count on to make a closing funding resolution on that Oneok pipeline in mid-2023.”
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Mexico’s president, Andrés Manuel López Obrador, mentioned Tuesday he had met with MPL administration, and indicated the mixed funding quantity of the terminal and a pipeline in Sonora state would attain $14 billion. He referred to as the challenge “excellent news” in a tweet following the assembly.
An MPL spokesperson was not instantly out there to substantiate the president’s assertion.
Likewise, Burdick mentioned Oneok is just not but ready to publicly focus on funding quantities or contract phrases with relation to Saguaro Connector.
Tulsa, OK-based Oneok operates an intensive community of pure gasoline and pure gasoline liquids (NGL) infrastructure serving the Williston, Powder River, Denver-Julesburg, Anadarko and Permian basins in america.
The corporate posted an 11% yr/yr improve in pure gasoline volumes processed in the course of the first three months of the yr, together with a 27% improve within the Midcontinent area. “Regardless of weak point in pure gasoline costs, we proceed to see robust exercise within the increased crude and NGL-rich producing areas of the area, the place producers are focusing their drilling,” Burdick mentioned.
Within the pure gasoline pipelines section, “robust first quarter outcomes proceed to profit from agency transportation providers and the demand for pure gasoline storage,” Burdick mentioned. “We’re on monitor to finish an growth of our pure gasoline storage capabilities in Oklahoma within the second quarter, permitting us to make the most of and subscribe an extra 4 Bcf of our current storage capability.”
Oneok additionally reported a 17% improve in Gulf Coast/Permian area NGL uncooked feed throughput volumes.
“Greater pure gasoline and pure gasoline liquids volumes on our system supplied a strong begin to 2023 and proceed to drive constructive monetary outcomes,” mentioned CEO Pierce Norton II.
He highlighted completion in February of the 200 MMcf/d Demicks Lake III pure gasoline processing plant within the Williston Basin, and in April of the MB-5 NGL fractionator challenge in Mont Belvieu, TX.
The tasks “present extra system capability and resiliency, and are examples of our continued concentrate on intentional and disciplined development,” Norton mentioned.
Oneok administration touted a spike in producer exercise within the Rocky Mountain area, the place 149 wells had been linked to Oneok methods throughout 1Q2023, versus 91 wells in the identical interval final yr.
Oneok reported web earnings of $1.05 billion ($2.34/share) for the quarter, versus earnings of $391 million (87 cents) in the identical interval final yr.
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