Oneok plans expansions to gas, NGL infrastructure

Oneok Inc. plans to expand its natural gas and natural gas liquids systems between now and 2021.

Projects include a 200-MMcfd expansion of the Bear Creek gas processing facility and related systems in the Williston basin, Midcontinent NGL fractionation facility expansions totaling 65,000 b/d and additional NGL infrastructure to increase capacity between the Elk Creek and Arbuckle II pipelines, and a 40,000-b/d additional expansion of the West Texas LPG pipeline in the Permian basin.

These projects are expected to be financed with cash generated from operations and short and long-term borrowings. Oneok continues to expect no equity issuances.

At a cost of $405 million and supported by acreage dedications with primarily fee-based contracts, the Bear Creek expansions are expected to be completed in first-quarter 2021. The company’s Williston basin gas processing capacity will increase to more than 1.6 bcfd. The expansion is expected to produce 25,000 b/d of NGLs in ethane rejection, resulting in 225,000 b/d of raw feed contracted since the announcement of the Elk Creek pipeline.

At a cost of $145 million, the West Texas LPG pipeline expansion is expected to be completed in first-quarter 2021. Expansion is supported by long-term dedicated NGL production from third-party gas processing plants in the Permian basin that are expected to produce up to 45,000 b/d of NGLs.

Since October 2017, Oneok has announced expansions totaling 160,000 b/d on the West Texas LPG pipeline system, with previous announcements including a 40,000 b/d expansion that was placed in service in fourth-quarter 2018 and an additional 80,000 b/d expansion expected to be completed in first-quarter 2020 (OGJ Online, Sept. 11, 2018).

Expansions to Oneok’s Midcontinent NGL fractionation facilities are expected to cost $150 million, with 15,000 b/d expected to be completed in third-quarter 2020 and 50,000 b/d expected to be completed in first-quarter 2021. In expectation of accelerating volume growth from the Williston and Powder River basins, additional infrastructure will be constructed to increase connectivity between the Elk Creek and Arbuckle II pipelines.