8-KOther EventsExhibits & Filings

ONEOK INC /NEW/ 8-K Report, Corporate Update (Sep 12, 2008)

Filed September 12, 2008For Securities:OKE

Summary

ONEOK Inc. (OKE), through its partnership ONEOK Partners, L.P. (OKS), announced on September 10, 2008, a significant infrastructure investment with the planned construction of a $70 to $80 million natural gas liquids (NGL) pipeline lateral. This new 125-mile D-J Basin Lateral Pipeline will connect the growing Denver-Julesburg (D-J) Basin in northeastern Colorado to the Overland Pass Pipeline, which is also under construction. The project underscores OKE's strategic expansion and commitment to serving key energy-producing regions. This investment is designed to enhance the transportation capacity for NGLs from the D-J Basin, with the lateral pipeline capable of moving up to 55,000 barrels per day. These NGLs will then be transported via the larger Overland Pass Pipeline, which has a substantial capacity of 255,000 barrels per day. With construction already underway and an expected start-up in early 2009, this project positions ONEOK Partners to capitalize on the production from five existing natural gas processing facilities in the D-J Basin and already has supply commitments for a significant portion of its capacity.

Key Highlights

  • 1ONEOK Partners, L.P. is building a new $70-$80 million natural gas liquids (NGL) pipeline lateral.
  • 2The project, named the D-J Basin Lateral Pipeline, is 125 miles long.
  • 3It will connect the Denver-Julesburg (D-J) Basin in Colorado to the Overland Pass Pipeline.
  • 4The lateral pipeline will have a capacity of up to 55,000 barrels per day of NGLs.
  • 5Construction has commenced, with an anticipated start-up in early 2009.
  • 6The pipeline will transport NGLs from five existing processing facilities in the D-J Basin.
  • 7Supply commitments are secured for up to 33,000 barrels per day of unfractionated NGLs.

Frequently Asked Questions

The D-J Basin Lateral Pipeline is designed to transport natural gas liquids (NGLs) from the Denver-Julesburg (D-J) Basin in northeastern Colorado to the Overland Pass Pipeline, thereby increasing the overall NGL transportation capacity from this productive region.

The estimated cost for the D-J Basin Lateral Pipeline is between $70 and $80 million. Construction is currently underway, and the initial start-up is scheduled for early 2009.

The 125-mile D-J Basin Lateral Pipeline is designed to transport as much as 55,000 barrels per day of raw natural gas liquids. These liquids will then flow into the Overland Pass Pipeline, which has a much larger capacity of 255,000 barrels per day.

Yes, ONEOK Partners has secured supply commitments for up to 33,000 barrels per day of unfractionated natural gas liquids, indicating strong initial demand for the new transportation service.