Oneok Inc., Tulsa, will spend $295 million for a second expansion of its West Texas LPG LP pipeline system, which provides natural gas liquids takeaway capacity for Permian basin producers.
The expansion includes the construction of four pump stations, two pump station upgrades, and pipeline looping that will increase the West Texas LPG mainline capacity by 80,000 b/d, and additional infrastructure to connect West Texas LPG with Oneok’s Arbuckle II Pipeline project.
The expansion, with completion expected in first-quarter 2020, is supported by long-term dedicated NGL production from six third-party natural gas processing plants in the Permian basin that are expected to produce as much as 60,000 b/d of NGLs, the company said.
The first expansion, a 110,000-b/d lateral extension of the West Texas LPG system into the Delaware basin, as well as expansion of the existing mainline system, is under construction, Oneok said, and is expected to be in service this month (OGJ Online, Oct. 24, 2017).
In July, Oneok became the sole owner of West Texas LPG after acquiring the remaining interest from Martin Midstream Partners LP for $195 million (OGJ Online, July 26, 2018).
Oneok continues discussions with producers and processors in the region for additional potential volume commitments.
West Texas LPG Pipeline consists of 2,600 miles of NGL pipeline in Texas and New Mexico and provides transportation to the Mont Belvieu market center from nearly 40 third-party gas processing plants in the Permian basin.
