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.