Oneok to invest in Texas, North Dakota plants

By OGJ editors

Oneok Partners LP, Tulsa, will spend between $980 million to $1.1 billion through 2014 on several projects in southeastern Texas and North Dakota.

At Mont Belvieu, about 20 miles east of Houston, the company will build a 75,000 b/d NGL fractionator (MB-3), a 40,000 b/d ethane-propane splitter, and associated systems for both.

In North Dakota, Oneok will build a 100 MMcfd gas processing plant (Garden Creek II) and related systems in eastern McKenzie County, ND, in the Bakken shale in the Williston basin. It will also increase capacity on its Bakken NGL pipeline to 135,000 b/d from 60,000 b/d.

Oneok said supply commitments for the expanded pipeline and fractionator are “in various stages of negotiation and will be anchored” by NGL production from the company’s gas processing plants and third-party processors. The Garden Creek II plant will be supported by “acreage dedications,” it said.

Mont Belvieu

The MB-3 fractionator, which will cost $375-415 million and be Oneok’s third fractionator in Mont Belvieu, will be in service during fourth-quarter 2014. It will supplement the company’s 80%-owned, 160,000 b/d MB-1 fractionator, as well as its wholly owned, 75,000 b/d MB-2 fractionator, the latter of which still under construction and set to begin operating in mid-2013 (OGJ, May 7, 2012, p. 88).

This investment also includes $150-160 million to expand Oneok's Mont Belvieu NGL storage, existing Oklahoma NGL gathering, and existing Arbuckle and Sterling II pipelines.

Oneok Partners owns an NGL system in the Midcontinent and Gulf Coast, including fractionators and storage in Mont Belvieu; Bushton, Conway, and Hutchinson, Kan.; and Medford, Okla. It also owns interstate NGL distribution pipelines between Conway and Mont Belvieu and NGL and refined petroleum products distribution pipelines that connect its Midcontinent NGL infrastructure to Midwest markets, including Chicago.

Oneok is currently spending $610-810 million to build a 570-mile, 16-in. NGL pipeline (Sterling III) that is to be completed in late 2013 (OGJ, Apr. 7, 2012, p. 104). It will move either unfractionated NGLs or NGL purity products to the Texas Gulf Coast from Midcontinent, with an initial capacity of 193,000 b/d and the ability to be expanded to 250,000 b/d. The company will reconfigure its existing Sterling I and II NGL distribution pipelines to transport either unfractionated NGLs or NGL purity products.

Oneok will invest about $45 million to install a 40,000 b/d E-P splitter at its Mont Belvieu storage to split E-P mix into purity ethane for petrochemical customers. The splitter will be able to produce 32,000 b/d of purity ethane and 8,000 b/d of propane and is to be in service in second-quarter 2014.

North Dakota

The Garden Creek II plant, including expansions and upgrades to its existing gas gathering and compression, will cost $310-345 million and be in service in third-quarter 2014. The plant will sit adjacent Oneok’s existing Garden Creek gas plant, completed in December 2011 (OGJ Online, Jan. 10, 2012).

The announcement of the Garden Creek II plant and related infrastructure increases Oneok’s Bakken-related investments to $3.6-4.2 billion for natural gas, NGL, and crude oil-related infrastructure out to 2015, said Pierce H. Norton, executive vice-president and chief operating officer of Oneok Partners.

The company’s previously announced Stateline I and Stateline II gas plants are to be in service this quarter and first-half 2013, respectively (OGJ, May 7, 2012, p. 88). When completed, the combined gas processing capacities of the Garden Creek II plant, the Stateline I and II plants, and existing Garden Creek and Grasslands gas plants will be 490 MMcfd in the Williston basin.

Oneok also will invest $100 million to install additional pump stations on the Bakken NGL pipeline. The expansion is to be completed in third-quarter 2014. The 525-615-mile Bakken NGL pipeline will move unfractionated NGLs produced from the Bakken shale to Oneok’s 50%-owned, 760-mile Overland Pass pipeline from southern Wyoming to Conway, Kan. The Bakken NGL pipeline, currently under construction, is to be in service during first-half 2013 (OGJ Online, July 27, 2010; May 7, 2012, p. 104).

Related Articles

West Cornwall Township hears from Sunoco Logistics

12/12/2014

Sunoco Logistics Partners outlined its safety systems during a West Cornwall Township meeting in Pennsylvania on Nov. 10.

ETP eyes larger capacity for planned Bakken pipe

12/12/2014 Energy Transfer Partners LP has launched a binding expansion open season to boost capacity on a planned pipeline system that would move oil from th...

Kinder Morgan to deliver natural gas to Corpus Christi Liquefaction

12/11/2014 Kinder Morgan Inc. (KMI) companies Kinder Morgan Texas Pipeline, Kinder Morgan Tejas Pipeline, and Tennessee Gas Pipeline Co. (TGP) have entered in...

Rosneft, Essar sign terms of oil supply agreement

12/11/2014 OAO Rosneft and Essar Energy PLC have signed key terms of an oil supply agreement in New Delhi. Rosneft said shipments to India may begin in 2015.

Barton introduces bill to remove US crude export limits

12/11/2014

US Rep. Joe Barton (R-Tex.) introduced legislation that would remove US crude oil export limits that have been in place for nearly 40 years.

BG agrees to sale of Australian gas pipeline to APA Group

12/10/2014

BG Group PLC agreed to sell its wholly owned subsidiary Queensland Curtis LNG Pipeline Pty. Ltd. (QCLNG) to APA Group for about $5 billion.

More West Texas gathering, processing to come onstream

12/09/2014 EagleClaw Midstream Services LLC, Midland, Tex., has bought natural gas gathering and processing in Reeves County, Tex. The company declined to ide...

Methane controls just part of complete climate strategy, speakers say

12/08/2014 Reducing oil and gas operations’ methane emissions is an essential, but far from the only, part of a comprehensive climate strategy, speakers at a ...

Rail tank car rule could cost economy billions, report says

12/08/2014 The US Pipeline and Hazardous Materials Safety Administration's (PHMSA) proposed rail tank car rule could cost the US economy as much as $60 billio...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected