ONEOK Seeks Extension for U.S.-Mexico Gas Pipeline Segment Tied to LNG Project

ONEOK is seeking more time to complete a key U.S.-Mexico pipeline segment tied to LNG exports, as delays tied to litigation and commercial negotiations slow progress.

(P&GJ) — ONEOK is seeking additional time to complete a cross-border natural gas pipeline segment connecting the Permian Basin to Mexico, according to an April 8 notice from the Federal Energy Regulatory Commission (FERC).

Saguaro Connector Pipeline, LLC, a ONEOK affiliate, has requested an extension until Feb. 15, 2030, to construct and place into service its border facilities project, a roughly 1,000-foot, 48-inch-diameter pipeline crossing the Rio Grande in Hudspeth County, Texas.

The project was originally required to be completed by Feb. 15, 2027, under FERC’s 2024 authorization.

The company said delays stemmed from prolonged litigation, ongoing commercial negotiations and the timing of a planned liquefied natural gas (LNG) export facility on the Mexican side of the border.

Saguaro told regulators it held off on making a final investment decision and beginning construction while legal challenges were pending, but has since resumed discussions with potential shippers and financing partners following resolution of the case.

The pipeline is designed to supply natural gas from the Permian Basin, including volumes from the Waha Hub, to a proposed LNG export terminal in Mexico.

FERC said the notice establishes a 15-day comment and intervention period, with comments due by April 23. The agency will evaluate whether the company has demonstrated good cause to grant the extension and will not revisit prior approvals or environmental reviews tied to the project.

In August 2025, a federal appeals court upheld FERC’s approval of the Saguaro Connector’s 1,000-foot border segment, rejecting challenges from environmental groups seeking broader federal oversight of the project.

The U.S. Court of Appeals for the District of Columbia Circuit ruled that FERC acted within its authority by limiting jurisdiction to the cross-border portion of the pipeline while leaving the longer intrastate segment under Texas regulation.

The decision affirmed the agency’s longstanding approach to regulating border-crossing infrastructure and allowed the project to move forward following months of legal uncertainty.

The pipeline is part of a broader system designed to move Permian Basin natural gas to Mexico for delivery to an LNG export facility on the country’s west coast.