The new approach from the US federal government regarding the plan to increase oil and gas production to transform the US into the undisputed king of the international oil and gas market has been picking up steam in recent months. Now, Oneok Inc., a global energy company that operates several developments in the US energy market, has revealed it is advancing its plans to complete the Saguaro Connector natural gas pipeline in the near future.
A new era of oil and gas production is upon the United States
The US has seen a surge in new gas and oil developments since Donald Trump took office to begin his second term. The President has mandated that energy companies increase output from oil and gas projects and develop new ones to boost the US energy market. This has gone down rather well with the litany of energy operators in the US energy market.
Following four years under the Biden administration, actively rolling back the output capacity of oil and gas in the US was the name of the game; however, since Trump took office, the situation has changed dramatically. The US now leads the world in gas production by capacity and is aiming to continue its domination by promoting more projects in the near future.
Oneok to advance major pipeline construction in the US energy market
The company plans to construct a new gas gathering pipeline that will boost the US output capacity over the coming years. The Saguaro Connector natural gas pipeline will transport the natural energy resource to the US-Mexico border, which will then be fed into the Mexican processing facilities.
Boosting cross-border relations can increase output capacity in the oil and gas market
The Saguaro Connector natural gas pipeline will run into the planned Sierra Madre pipeline being developed by Mexico Pacific. From there, it will be on the way to the proposed Saguaro Energía LNG export terminal in Sonora to be processed for use on the global energy market.
Although Mexico Pacific has secured offtake agreements with several companies, it has not yet reached a final investment decision on the new processing facility, but hopes for everything to go according to plan in the near future.
The aim, according to Oneok’s leadership, is to supply gas for the growing Asia-Pacific market through the new pipelines that will deliver vast amounts of natural energy resources for exporting. The Saguaro Connector Pipeline will enable the transport of gas through a 48-inch diameter pipeline, boasting a tremendous output of approximately 2.834 billion cubic feet per day of natural gas.
The plan comes as several new gas pipelines in the Permian have been announced, paving the way for the US to dominate the gas production market for many years to come.
“From a natural gas storage perspective, we continue to focus on expansion projects. We are currently working on a project to reactivate 3 Bcf of previously idled storage in Texas and are further expanding our injection capabilities in Oklahoma,” – Sheridan Swords, executive vice president of commercial liquids and natural gas gathering and processing
Pipeline purchases and expansions in the Permian have boosted the US market
It comes as no surprise to anyone within earshot of the energy market that the US has been increasing output capacity from the conventional oil and gas market in recent months. As new pipelines are being planned, several energy companies have been purchasing the rights to existing ones and developing plans to boost output in the US market. As the world aims to end the generational reliance on oil and gas, the US is taking the opposite road and is promoting the expansion of its gas and oil market.
