USA: Natural Gas Liquids Oneok to Expand NGL Fractionation and Natural Gas Capacity

Editor: Alexander Stark

Oneok plans to construct additional natural gas liquids (NGL) and natural gas infrastructure. The measures include a new 125,000-barrel per day (bpd) NGL fractionator in Mont Belvieu, Texas, and related infrastructure.

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Oneok announced additional NGL Fractionation as well as pipeline capacity and natural gas processing capacity
Oneok announced additional NGL Fractionation as well as pipeline capacity and natural gas processing capacity
(Source: Pixabay / CC0 )

Tulsa/USA — The capacity expansion announced by Oneok also comprises a new 200-million cubic feet per day (MMcf/d) natural gas processing facility — the Demicks Lake II plant and related infrastructure — in the Williston Basin. Additionally, the company plans the extension of their Arbuckle II NGL pipeline further north and additional NGL gathering infrastructure to increase capacity between the Mid-Continent market hub and Arbuckle II. Finally, they plan the expansion of the Arbuckle II NGL pipeline by approximately 100,000 bpd to increase total capacity up to 500,000 bpd by adding pump stations.

The previously announced 200 MMcf/d Demicks Lake I plant is expected to reach capacity soon after its expected completion in the fourth quarter 2019, increasing the need for the Demicks Lake II plant.

NGL Projects

The new MB-5 fractionator and related infrastructure project, which includes system expansions for future additional fractionation, storage and export capabilities in Mont Belvieu, is expected to cost approximately $ 750 million. MB-5 is fully contracted and will increase the company's total NGL fractionation capacity to more than 1 million bpd.

The Arbuckle II extension project will provide additional takeaway capacity needed to support volume growth in the Stack, and additional NGL gathering infrastructure will allow increasing volumes on the Elk Creek Pipeline access to fractionation capacity at Mont Belvieu. The project is expected to cost approximately $ 240 million.

The 100,000 bpd expansion of Arbuckle II with additional pump facilities is expected to cost $ 60 million. Arbuckle II is currently under construction, with the initial 400,000 bpd of capacity expected to be complete in the first quarter 2020. Contracted capacity on Arbuckle II is now more than 300,000 bpd.

All of the above NGL projects are expected to be completed in the first quarter 2021.

Demicks Lake II Plant and Related Infrastructure

The Demicks Lake II natural gas processing plant and related infrastructure in McKenzie County, North Dakota, are expected to cost a total of approximately $ 410 million and be completed in the first quarter of 2020. The 200-MMcf/d plant is supported by acreage dedications with primarily fee-based contracts.

The Demicks Lake I and II plants are expected to contribute additional NGL volumes to Oneok's NGL gathering system and natural gas volumes to the producer's 50 %-owned Northern Border Pipeline.

Following the project's completion, the company's Williston Basin natural gas processing capacity will increase to more than 1.4 billion cubic feet per day.

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