The US Environmental Protection Agency (EPA) has issued a final greenhouse gas (GHG) prevention of significant deterioration (PSD) construction permit to Oneok Hydrocarbon, an operating subsidiary for Oneok Partners LP, for expansion of the company’s fractionator at Mont Belvieu, Tex., east of Houston.
The permit allows Oneok to build two new units at an estimated cost is $800 million.
Oneok Partners LP owns the third-largest NGL fractionation capacity at Mont Belvieu, with its current capacity of 235,000 b/d already set for expansion (OGJ, June 7, 2014, p. 86).
Oneok holds an 80% interest in and operates MB-1, a 160,000-b/d NGL fractionator (OGJ Online, Apr. 15, 2013), and has a long-term, third-party fractionation-services agreement for an additional 60,000-b/d NGL fractionation capacity, according to the company's yearend 2013 SEC filing.
In addition to MB-1, in December 2013 Oneok completed its $375 million, 75,000-b/d MB-2 fractionator at Mont Belvieu, the company said in its yearend 2013 report.
EPA’s announcement said it has finalized 44 GHG permits in Texas, proposed an additional 7, and has 19 more under review and permit development in Texas.