The investment from ONEOK will be made between now and 2021 for expanding capacities of a natural gas facility, an NGL pipeline and certain fractionation facilities


Image: ONEOK is a Tulsa, Oklahoma based midstream company. Photo: courtesy of Jordan MacDonald from Broken Arrow, Oklahoma, U.S.A./

Oklahoma-based midstream company ONEOK will invest around $700m (£562.45m) towards the expansion of its natural gas and natural gas liquids (NGL) infrastructure.

The investment will be made from now and 2021 for expansions of a natural gas facility, an NGL pipeline and certain fractionation facilities.

ONEOK to expand Bear Creek natural gas processing facility

In North Dakota, ONEOK will invest around $405m (£325.42m) for expanding the Bear Creek natural gas processing facility expansion and related infrastructure located in Dunn County. The expansion project will give an additional capacity of 200 million cubic feet per day (MMcf/d) to the Bear Creek natural gas processing facility.

The midstream company expects to wrap up the expansion project in the first quarter of 2021. The company said that the expansion of the Bear Creek facility is backed by acreage dedications with mainly fee-based contracts.

Following the expansion, the natural gas processing capacity of ONEOK in the Williston Basin will move up by more than 1.6 billion cubic feet per day. The expansion is likely to produce nearly 25,000bpd of NGLs in ethane rejection, which will result in 225,000bpd of raw feed contracted since the company’s announcement of the Elk Creek Pipeline project.

ONEOK to invest another £116.5m in West Texas LPG pipeline expansion

The second investment, which is of around $145m (£116.51m), will be for expanding the West Texas LPG pipeline in the Permian Basin by an additional 40,000bpd. Expected to be wrapped up in the first quarter 2021, the pipeline expansion is backed by long-term dedicated NGL production from third-party natural gas processing plants located in the Permian Basin that are expected to have a production of up to 45,000 bpd of NGLs.

As part of previously announced expansions, ONEOK is set to complete an additional 80,000bpd expansion of the West Texas LPG pipeline in the first quarter of 2020.

Third investment of ONEOK will be for expanding NGL fractionation facilities

The third investment by ONEOK, of around $150m (£120.53m), will be made in its Mid-Continent NGL fractionation facilities to increase their total capacity total by nearly 65,000bpd by the first quarter of 2021. The investment will also be used for the construction of new infrastructure to increase connectivity between the Elk Creek and Arbuckle II pipelines to address accelerated volume growth from the Williston and Powder River basins.

ONEOK president and CEO Terry Spencer said: “The Bear Creek plant expansion in North Dakota will provide needed processing capacity for producers actively developing the high-growth area of Dunn County while also helping to address natural gas flaring in the state,”

“Continuing to expand our West Texas LPG pipeline system underscores ONEOK’s Permian Basin strategy to provide needed NGL transportation capacity to producers in the highly productive Delaware and Midland basins.”