Oneok to double Canadian Valley gas processing capacity in STACK play

Oneok Inc. plans to double the capacity of its Canadian Valley natural gas processing facility in the Sooner Trend Anadarko basin Canadian and Kingfisher counties (STACK) play of western Oklahoma to 400 MMcfd.

Oneok Inc. plans to double the capacity of its Canadian Valley natural gas processing facility in the Sooner Trend Anadarko basin Canadian and Kingfisher counties (STACK) play of western Oklahoma to 400 MMcfd.

The Canadian Valley II project in Canadian County, Okla., is expected to be completed by the end of 2018. The expansion and related infrastructure is expected to cost $155-165 million and is supported by more than 200,000 acres of dedication, primarily fee-based contracts and minimum volume commitments.

"The doubling of processing capacity at Canadian Valley is needed to capture rapidly increasing customer production in the STACK play," said Terry K. Spencer, Oneok president and chief executive officer.

The expansion of Canadian Valley, along with the firm's recently announced 200-MMcfd firm offload agreement to a third-party processor, will bring Oneok's total gas processing capacity in Oklahoma to 1.1 bcfd by 2019.

Additionally, NGLs produced from the expansion are expected to add 20,000 b/d of additional volumes to Oneok's existing Oklahoma NGL gathering system.

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