Oneok, an Oklahoma-based diversified midstream service provider, has announced its plan to invest approximately $100m in constructing a 120km natural gas liquids (NGL) pipeline lateral.
Oneok is intended to construct the new pipeline to connect the northern portion of the Bakken NGL Pipeline with a third-party natural gas processing plant in eastern Williams County, North Dakota.
Construction of the lateral is expected to be completed in the fourth quarter 2020 and is supported by long-term dedicated NGL production, including a minimum volume commitment, which will deliver NGLs to Oneok’s Elk Creek Pipeline. Oneok continues discussions with producers and processors in the area for additional potential volume commitments.
The lateral is expected to provide access to raw feed NGL pipeline takeaway in an area of Williams County with historically limited transportation options, and would provide connectivity with key NGL market centers.
In January 2018, Oneok has announced its intension to build a new 1,448km long pipeline and associated infrastructure to transport natural gas liquids (NGLs) from the Rocky Mountain region to its existing Mid-Continent NGL facilities.
The pipeline project is expected to be constructed with a cost of about $1.4bn, and is expected to boost Oneok’s NGLs takeaway capacity out of the Rocky Mountain region.
The US midstream service provider said that the as the Elk Creek Pipeline, with 20inch diameter, is expected to have a capacity to transport 240,000 barrels per day (bpd) of unfractionated NGLs.
The company said that the NGL pipeline would have the capability to be expanded to 400,000bpd, with additional pump facilities.
The new pipeline is expected to transport the NGLs from near the company’s Riverview terminal in eastern Montana to Bushton in Kansas and would to be ready by the end of next year. The pipeline is supported by a 10-15 years of long-term contracts totaling around 100,000bpd, mainly by minimum volume commitments.
Oneok has made the Elk Creek Pipeline as part of its $3-3.5bn of potential capital-growth projects and expects to announce additional projects on similar lines as the Elk Creek Pipeline once they secure adequate supply commitments.