Oneok to invest $1.5bn in US NGL and natural gas infrastructure

Oneok is planning to build additional natural gas liquids (NGL) and natural gas infrastructure in the US, with a combined investment of $1.5bn.

The plans include construction of a new 125,000-barrel per day (bpd) NGL fractionator (MB-5) in Mont Belvieu, Texas, and associated infrastructure with an investment of nearly $750m, which will increase Oneok’s total NGL fractionation capacity to more than one million barrels per day.

The related infrastructure set to be undertaken includes system expansions for future additional fractionation, storage and export capabilities.

Oneok will also build a new 200 million cubic feet per day (MMcf/d) natural gas processing facility, including the Demicks Lake II plant and related infrastructure, in the Williston Basin at a cost of $410m.

Once the Demicks Lake II plant is constructed, the company will have a natural gas processing capacity of more than 1.4 billion cubic feet a day in the Williston Basin.

Other NGL projects include an extension of Oneok’s Arbuckle II NGL pipeline to provide additional takeaway capacity to cater to growing production in the STACK play, and an expansion of the Arbuckle II NGL pipeline by 100,000bpd.

The $240m Arbuckle II extension project also includes the creation of additional NGL gathering infrastructure to enhance capacity between the Mid-Continent market hub and Arbuckle II.

Meanwhile, the $60m Arbuckle II expansion project involves the addition of pump stations in a bid to bring the total capacity to up to 500,000bpd.

Oneok president and CEO Terry Spencer said: “Continued production growth across the basins Oneok serves requires additional NGL fractionation and natural gas processing capacity.

“Producers are looking for increased connectivity with the Mont Belvieu market centre, and ONEOK is competitively positioned to provide it.

“Additional natural gas gathering and processing capacity in the Williston Basin is critical to supporting record-setting crude oil and natural gas production in North Dakota and helping producers meet regional natural gas capture targets.”

The completion of the NGL projects is slated for the first quarter of 2021, while the Demicks Lake II plant and related infrastructure are scheduled to be completed in the first quarter of 2020.