Oneok announced in their 2Q 2023 earnings call they are still weighing the development of a Waha Hub to Mexico natural gas export pipeline, the Saguaro Connector Pipeline. The 48-inch pipeline would have an ultimate capacity of 2.8 Bcf/d and connect to an under-development pipeline on the Mexico side of the border for delivery to an LNG export facility on the west coast of northern Mexico. Currently on the northwestern coast of Mexico, Sempra’s 1.6 Bcf/d (12 MMtpa) Energia Costa Azul export terminal is progressing and expected to enter service in the second half of 2025. Oneok expects a final investment decision on the pipeline by the end of the year. If the pipeline is greenlighted, Oneok plans to commission the pipeline in the first half of 2025.
Featured Articles
The Waiting Game - Mexico Hoping for Boom in LNG Exports, But Major Hurdles Remain
Mexico’s LNG sector has seen notable advancements in the past year, including new export project announcements and strategic investments. But many of the proposed LNG projects require extensive pipeline buildouts — no easy task south of the border and perhaps the biggest impediment most of the export projects face. In today’s RBN blog, we’ll look at where things stand with Mexico’s LNG sector and the export projects under development.
Tijuana Taxi - New Gas Pipelines From the Permian to Northwest Mexico Are Needed to Meet Demand
Mexico’s state-owned Comisión Federal de Electricidad (CFE) and private-sector developers of LNG export terminals have been aggressively advancing new natural gas-consuming projects in Northwest Mexico. But while plans for a number of new pipelines to help bring in gas from the Permian are on the drawing board, it remains to be seen if they can be built as quickly as they would need to be to avert a potentially ugly competition for gas supplies. In today’s RBN blog, we discuss the gas-demand and gas-delivery projects now under development in Northwest Mexico.
Coming Up, Part 6 - New Agreements Boost Sempra-Led LNG Projects in U.S. and Mexico
Developers are scrambling to advance the next round of liquefaction/LNG export projects, primarily along the U.S. Gulf Coast. Earlier this month, LNG marketing behemoth Total SA signed initial agreements with Sempra Energy that would support Sempra’s efforts to add more liquefaction capacity at its Cameron LNG project in southwestern Louisiana and to build a liquefaction plant at its Energía Costa Azul LNG import terminal in Mexico’s Baja California state. A few days later, Total, Mitsui & Co., and Tokyo Gas signed heads of agreements for the entire capacity of the Mexican liquefaction project, propelling that project to the fore. Sempra also continues to pursue a third project: Port Arthur LNG. Today, we continue our series on the next round of liquefaction/LNG export terminals “coming up” with a look at Phase 2 of Cameron LNG, as well as Energía Costa Azul and Port Arthur LNG.
