Oneok halting construction at three gas plants

Oneok Partners LP, Tulsa, has suspended construction on 500 MMcfd of gas processing capacity at three plants in the Williston basin of North Dakota, Powder River basin in Wyoming, and Anadarko basin in Oklahoma. The actions are in response to lower commodity prices, especially for natural gas and NGLs, the company reported in its Feb. 24 earnings call.

Terry K. Spencer, Oneok Partners president and chief executive officer, said the company will spend no more on these projects “until market conditions improve” when it will “quickly reestablish completion dates.”

Details on the three plants are as follows:

• In mid-2014, Oneok announced plans for the 200-MMcfd Knox plant in Grady and Stephens counties, Okla. It was to spend $365-470 million by expected plant start-up in late 2016. The Knox plant was to increase Oneok’s Oklahoma gas processing capacity to 900 MMcfd. Estimated costs included $175-240 million to build the plant and $190-230 million to build related systems, including gas gathering pipelines and compression (OGJ Online, July 24, 2014).

• The 100-MMcfd Bronco plant being built in southern Campbell County, Wyo., was to serve production from the NGL-rich Turner, Frontier, Sussex, and Niobrara shales. At its announcement in second-half 2014, Bronco was expected to cost $215-305 million to build towards a third-quarter 2016 completion. Oneok was spending $130-190 million to build the plant; $45-60 million to build a 65-mile, 10-in. NGL pipeline to connect it to Oneok’s Bakken NGL pipeline lateral; and $40-55 million to build related gas systems.

• The 200-MMcfd Demicks Lake plant in McKenzie County, ND, is part of 500 MMcfd of processing under way in the county, including the 100-Garden Creek III plant that was to be completed at yearend 2014 and the 200-MMcfd Lonesome Creek plant scheduled for completion in fourth-quarter this year (OGJ Online, Sept. 22, 2014).

Contact Warren R. True at [email protected].