Oneok JV plans another NGL pipeline
Overland Pass Pipeline Co. plans to build a 150-mile NGL pipeline lateral to connect with the previously announced 750-mile Overland Pass Pipeline.
By OGJ editors
HOUSTON, Mar. 29 -- Overland Pass Pipeline Co. LLC, a Tulsa-based joint venture of Oneok Partners LP and Williams Cos., plans to build a 150-mile NGL pipeline lateral to connect with the previously announced 750-mile Overland Pass Pipeline in a move to handle growing volumes in the Piceance basin in northwestern Colorado.
The $120 million lateral will have a capacity to transport as much as 100,000 b/d of raw NGLs from the Piceance basin to the 110,000 b/d Overland Pass Pipeline, which will extend from Opal, Wyo., to the Midcontinent NGL hub in Conway, Kan. Additional pump facilities would increase Overland Pass Pipeline capacity to 150,000 b/d (OGJ Online, May 5, 2006).
Under long-term NGL transportation and fractionation agreements that are being finalized, Williams will dedicate its NGL production from an existing plant and its newly announced Willow Creek, Colo., natural gas processing plant to the Overland Pass Pipeline via the proposed 150-mile pipeline extension.
Construction on the 14-in. lateral pipeline is expected to begin around mid-2008 with start-up scheduled for early 2009. Upon completion, the lateral will transport volumes from an existing Williams plant. Volumes from Williams' recently announced Willow Creek plant are expected to be transported in third quarter 2009.
Along with construction expenditures of $433 million for the Overland Pass Pipeline, Oneok Partners is spending an additional $216 million to expand and upgrade its existing NGL fractionation capabilities and the capacity of its NGL distribution pipelines.
Oneok Partners is managing the construction of the Overland Pass project and will be operator of the pipeline. Construction of the Overland Pass Pipeline is expected to begin this fall with start-up expected in early 2008.
Williams, under a previously announced long-term shipping agreement will dedicate its NGL production, currently estimated at about 60,000 b/d, from two Wyoming gas processing plants to Overland Pass Pipeline.
Both projects require various state and federal regulatory approvals prior to construction.