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Texas-Mexico NatGas Pipeline Gets Border-Crossing Clearance

FERC on Thursday issued a presidential permit for the U.S.-Mexico border-crossing facilities of Roadrunner Gas Transmission LLC in support of a pipeline project to export Permian Basin natural gas.

The border crossing is a part of the larger Roadrunner Gas Transmission pipeline project of Oneok Partners LP and a subsidiary of Fermacoa Infrastructure BV to transport up to 640 MMcf/d from the Permian Basin to Mexico (see Daily GPI, April 1).

As the United States and Mexico are both parties to the North American Free Trade Agreement, the border crossing facilities are presumed to be in the public interest under the Natural Gas Act. U.S. natural gas crossing the border will fuel Mexico power generation and industrial facilities, mainly.

Federal Energy Regulatory Commission staff issued a favorable environmental assessment for the border crossing in September (see Daily GPISept. 4). Roadrunner plans to construct a border crossing in El Paso County, TX. It would consist of 900 feet of FERC-jurisdictional 30-inch diameter pipeline, installed beneath the Rio Grande River near San Elizario. The pipeline would transport natural gas to a new delivery interconnect with Tarahumara Pipeline S. de R.L. de C.V. at the border to serve expanding electric generation and industrial market needs in Mexico [CP15-161].

Roadrunner's new intrastate pipeline facilities, which include 205 miles of 30-inch-diameter pipeline, metering stations, and a new natural gas compressor station in Pecos County, TX, would be subject to the jurisdiction of the Railroad Commission of Texas and would be non-jurisdictional to FERC.

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