Oneok to increase Oklahoma-Texas NGL pipeline capacity

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, July 28 -- Oneok Partners LP announced July 28 plans to install seven additional pump stations for about $36 million along its existing Sterling I natural gas liquids distribution pipeline, increasing its capacity by 15,000 b/d to be supplied by the partnership's Midcontinent NGL system.

The Sterling I pipeline transports NGL purity products from Oneok’s fractionator in Medford, Okla., to the Mont Belvieu, Tex., market center and currently operates at capacity.

Oneok describes the expansion as enhancing optimization of activities between its Midcontinent and Gulf Coast operations, citing a 60,000 b/d fractionation services agreement with Targa Resource Partners beginning second-quarter 2011 at Mont Belvieu and another contract there expiring in this year’s third quarter.

Pump station installation will begin later this year and Oneok expects completion in second-half 2011. The company announced expansion plans for its Bakken shale NGL operations earlier the same week (OGJ Online, July 27, 2010).

Contact Christopher E. Smith at chriss@ogjonline.com.

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