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More gathering, processing planned for Bakken shale

Warren R. True
Chief Technology Editor-LNG/Gas Processing

HOUSTON, Oct. 6 -- Oneok Partners LP, Tulsa, will build a new natural gas processing plant and expand gathering and compression over the next 2 years in North Dakota, the company announced this week. It will spend $300-350 million in the Bakken shale in the Williston basin between now and yearend 2012.

Oneok will spend $180-205 million on the new, 100-MMcfd Stateline I gas plant in western Williams County, ND, and related NGL infrastructure. And it will spend $70-90 million to expand and upgrade gathering and compression along with about $50-60 million in 2011 and 2012 for new well connections adjacent Stateline I. Oneok expects Stateline I to begin operating during third-quarter 2012.

The Stateline I gas plant will join the 100-MMcfd Garden Creek plant, set to open next year, and the newly opened 100-MMcfd Grasslands plant, both in McKenzie County (OGJ, June 7, 2010, p. 52).

Another gas processing plant, Stateline II, is under consideration and would add another 100 MMcfd of capacity, if additional gas becomes available for processing.

Stateline I and related infrastructure follow Onoeok’s previously announced gas gathering and processing and NGL growth projects totaling more than $1.1 billion in the Bakken shale, the company said.

In July, the company announced about $700 million for NGL projects in the region, including construction of a 525-615-mile NGL pipeline able to move 60,000 b/d of unfractionated NGLs from the Bakken to the company’s 50% interest in the Overland Pass pipeline; related expansions for the Overland Pass Pipeline; and expansion of fractionation capacity at Bushton, Kan.

Contact Warren R. True at warrent@ogjonline.com.


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