Oneok to proceed with $295m West Texas LPG pipeline expansion

US-based natural gas gathering, processing and transportation company Oneok is planning to expand its West Texas LPG pipeline system with a $295m investment.

The West Texas LPG pipeline system provides natural gas liquids (NGL) takeaway capacity for producers in the Permian Basin, and the expansion project will increase the mainline capacity of the system by 80,000 barrels per day (bpd).

Anticipated to be completed in the first quarter of 2020, the project is being supported by six third-party natural gas processing plants that are expected to produce up to 60,000bpd of NGLs.

As part of the expansion, the company will construct four new pump stations, two pump station upgrades and pipeline looping, as well as additional infrastructure to connect the pipeline system with its Arbuckle II Pipeline project.

Oneok president and CEO Terry Spencer said: “This second expansion of the West Texas LPG Pipeline system will serve continued growth in the Permian Basin and positions Oneok for additional future expansion opportunities in the Permian.”

The company is working on securing additional potential volume commitments from producers and processors in the region.

Oneok also noted that its previously announced 110,000bpd lateral extension of the West Texas LPG system into the Delaware Basin and the expansion of the existing mainline system are currently under construction.

The company expects to place the lateral extension in service later this month.

The West Texas LPG Pipeline system comprises 2,600 miles of NGL pipeline in Texas and New Mexico.

It provides transportation services from 40 natural gas processing plants located in the Permian Basin to the Mont Belvieu marketplace in Texas.