As per terms of the proposed agreement, Oneok Partners will contract for 60,000 barrels per day of fractionation capacity at the Targa Resources Partners’ facility, which is currently being expanded to 275,000 barrels per day from 215,000 barrels per day.
Terry Spencer, chief operating officer of Oneok Partners, said: “This additional fractionation capacity will enable us to continue to provide value-added services to our NGL producers and customers from new supplies in the Mid-Continent, north Texas and Rocky Mountain regions.
“In addition to this capacity agreement with Targa Resources Partners, we will continue to evaluate other opportunities to expand existing or build new fractionation capacity in the Gulf Coast and Mid-Continent.”
The company said that the expansion is expected to be operational during the first quarter of 2011, subject to regulatory approvals. As part of the expansion, Targa Resources Partners and Oneok Partners plan to construct interconnect facilities that link Targa Resources Partners’ fractionation facility with Oneok Partners’ newly completed Arbuckle Pipeline, a 440-mile raw NGL pipeline extending from southern Oklahoma through the Barnett Shale of north Texas and on to Oneok Partners’ fractionation and storage facilities at Mont Belvieu.
In addition to an 80% interest in its MB-1 fractionator in Mont Belvieu, Oneok Partners also owns NGL fractionators in Medford, Oklahoma, in Bushton and Hutchinson, Kansas, and a 10% interest in a fractionator in Conway. Oneok Partners’ net capacity in these fractionators is approximately 550,000 barrels per day.
