USA: NGL and Natural Gas Oneok to Invest 2.3 Billion Dollar in Gas Infrastructure

Editor: Alexander Stark

Oneok plans to invest approximately $ 2.3 billion between now and 2020 to expand the infrastructure for NGL and Natural Gas in the US. The strategic projects complement the recently announced Elk Creek pipeline, increasing Oneok's ability to deliver NGLs from the Rocky Mountain region to growing markets in the Gulf Coast.

The approximately 530-mile, 24- and 30-inch diameter Arbuckle II Pipeline is expected to cost approximately $1.36 billion.
The approximately 530-mile, 24- and 30-inch diameter Arbuckle II Pipeline is expected to cost approximately $1.36 billion.
(Source: Oneok)

Tulsa/USA — The investments investment announced by Oneok include a new 125,000 bpd NGL fractionator in Mont Belvieu, a new 200-million cubic feet per day (MMcf/d) natural gas processing facility in the Williston Basin and a new 400,000-barrel per day (bpd) natural gas liquids (NGL) pipeline between Oneok's extensive Mid-Continent infrastructure in Oklahoma and the company's existing NGL facilities in Mont Belvieu.

The Arbuckle II Pipeline and MB-4 fractionator will help meet the needs of NGL producers in all of the basins where the company operates, including the Stack and Scoop areas and the Denver-Julesburg, Powder River, Williston and Permian basins.

Gallery

Arbuckle II Pipeline and MB-4

The approximately 853-km Arbuckle II Pipeline is expected to cost approximately $ 1.36 billion and will have an initial capacity to transport up to 400,000 bpd of unfractionated NGLs originating across the company's supply basins and extensive NGL gathering system to the company's storage and fractionation facilities at Mont Belvieu.

The Arbuckle II Pipeline is expected to be completed in the first quarter 2020. The pipeline will have the capability to be expanded up to 1 million bpd with additional pump facilities, which could more than double the supplier's current capacity between the Mid-Continent and Gulf Coast.

The new MB-4 fractionator and related infrastructure, which includes additional NGL storage capacity in Mont Belvieu, are expected to cost approximately $ 575 million and be completed in the first quarter 2020. The producer's total NGL fractionation capacity will increase to 965,000 bpd following the completion of MB-4.

The initial capacity of the Arbuckle II Pipeline is more than 50 % contracted, and MB-4 is fully contracted. Both are anchored by long-term contracts with terms ranging between 10 to 20 years.

Demicks Lake Plant and Related Infrastructure

The Demicks Lake natural gas processing plant and related field infrastructure are expected to cost a total of approximately $ 400 million and be completed during the fourth quarter 2019. The Demicks Lake plant will be built in McKenzie County, North Dakota, which is in the core area of the Williston Basin. The plant is supported by acreage dedications with primarily fee-based contracts.

The Demicks Lake plant is expected to contribute additional NGL volumes to the company's NGL gathering system and natural gas volumes to Oneok's 50 %-owned Northern Border Pipeline. The producer's Williston Basin natural gas processing capacity will increase to more than 34 million m3 per day following the completion of the Demicks Lake plant.

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