Oneok to Invest $2.3 Billion to Expand Midstream Infrastructure in Oklahoma and Texas
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US-based Oneok is planning to invest approximately $2.3bn to expand its midstream infrastructure with additional natural gas liquids (NGL) and natural gas infrastructure.
The investment will see construction of a new NGL pipeline, named Arbuckle II Pipeline, with an initial transportation capacity of 400,000-barrel per day (bpd).
The $1.36bn pipeline is aimed at creating additional NGL transportation capacity from the firm’s Mid-Continent infrastructure in Oklahoma to the company’s existing storage and fractionation facilities in Mont Belvieu, Texas.
Planned to be completed in the first quarter 2020, the Arbuckle II Pipeline capacity can be expanded up to 1 million bpd with additional pump facilities.
Oneok is also planning to build new 125,000 bpd NGL fractionators, known as MB-4, in Mont Belvieu, Texas, and related infrastructure.
Expected to cost approximately $575m, the new MB-4 fractionator and related infrastructure is planned to be completed in the first quarter 2020.
Upon completion, the fractionator is expected to increase Oneok’s total NGL fractionation capacity to 965,000 bpd.
The two projects are supported by long-term contracts with terms ranging between 10 to 20 years.
Additionally, Oneok plans to build a new 200-million cubic feet per day (MMcf/d) natural gas processing facility and related infrastructure in the Williston Basin located in McKenzie County, North Dakota.
The new $400m Demicks Lake natural gas processing plant and related field infrastructure is planned to be completed during the fourth quarter 2019.
Oneok President and CEO Terry Spencer said: “With more than $4bn of announced capital-growth projects since June 2017, we continue to build off of our significant asset footprint.
“The Arbuckle II Pipeline and MB-4 fractionator will help meet the needs of NGL producers in all of the basins where we operate, including the STACK and SCOOP areas and the Denver-Julesburg, Powder River, Williston and Permian basins.”
“These strategic projects complement our recently announced Elk Creek pipeline, increasing ONEOK’s ability to deliver NGLs from the Rocky Mountain region to growing markets in the Gulf Coast.”
In January, Oneok has revealed its plans to build a new 1,448km long pipeline and associated infrastructure to transport NGLs from the Rocky Mountain region to its existing Mid-Continent NGL facilities.
Source: Energy Business Review
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