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

PHMSA proposes pipeline accident notification regulations

07/02/2015 The US Pipeline and Hazardous Materials Safety Administration has proposed new federal oil and gas pipeline accident and notification regulations. ...

BHI: US oil rig count rises for first time in 30 weeks

07/02/2015 A sudden 12-unit jump in oil-directed rigs during the abbreviated week ended July 2 represented their first rise since Dec. 5, 2014, and helped lif...

Quicksilver Canada gets LNG export approval

07/02/2015 Quicksilver Resources Canada Inc. has received approval from the National Energy Board of Canada to export 20 million tonnes/year of LNG from a pos...

FourPoint Energy to acquire Anadarko basin assets from Chesapeake

07/02/2015 FourPoint Energy LLC, a privately owned Denver company, plans to acquire oil and gas assets from Chesapeake Energy Corp. subsidiaries Chesapeake Ex...

Origin lets contract for Otway basin fields

07/02/2015 Origin Energy Ltd., Sydney, has let a $1.3 million (Aus.) contract to Wood Group Kenny for provision of a detailed engineering design for the onsho...

API to issue recommended practice to address pipeline safety

07/01/2015 The American Petroleum Institute expects to issue a new recommended practice in another few weeks that addresses pipeline safety issues, but the tr...

Shell Midstream Partners takes interest in Poseidon oil pipeline

07/01/2015 Shell Midstream Partners LP has completed its acquisition of 36% equity interest in Poseidon Oil Pipeline Co. LLC from Equilon Enterprises LLC, a s...

Shell makes FID on Appomattox deepwater development in Gulf of Mexico

07/01/2015 Royal Dutch Shell PLC has taken a final investment decision (FID) on the Appomattox deepwater development, authorizing construction and installatio...

Woodside-led Browse FLNG venture enters FEED phase

07/01/2015 The Woodside Petroleum Ltd.-led Browse LNG joint venture has entered the front-end engineering and design phase for a floating LNG (FLNG) developme...
White Papers

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by
Available Webcasts

Operating a Sustainable Oil & Gas Supply Chain in North America

When Tue, Oct 20, 2015

Short lead times and unpredictable conditions in the Oil & Gas industry can create costly challenges in supply chains. By implementing a LEAN culture of continuous improvement you can eliminate waste, increase productivity and gain end-to-end visibility leading to a sustainable and well-oiled supply chain.

Please join us for this webcast sponsored by Ryder System, Inc.


On Demand

Leveraging technology to improve safety & reliability

Tue, Sep 22, 2015

Attend this informative webinar to learn more about how to leverage technology to meet the new OSHA standards and protect your employees from the hazards of arc flash explosions.


The Resilient Oilfield in the Internet of Things World

Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.


Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors


Emerson Micro Motion Videos

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