Summary
ONEOK Partners, L.P., a subsidiary of ONEOK INC, announced on July 26, 2010, a significant capital investment plan of approximately $595 million to $730 million focused on expanding its natural gas liquids (NGL) infrastructure. This strategic initiative is primarily driven by the anticipated growth in NGL production from the Bakken Shale region. The core of this plan involves the construction of a new NGL pipeline, the Bakken Pipeline, designed to transport unfractionated NGLs from North Dakota to the existing Overland Pass Pipeline in Wyoming and further to Conway, Kansas. This expansion is a key growth driver for ONEOK Partners, aiming to capitalize on the increasing NGL volumes expected from the Bakken Shale. The investment will not only build new transportation capacity but also enhance related pipeline infrastructure and significantly expand fractionation capacity. These projects, scheduled for completion between now and 2013, are expected to strengthen ONEOK Partners' position in the NGL midstream sector and enhance its ability to serve growing production areas.
Key Highlights
- 1ONEOK Partners, L.P. announces capital expenditure of $595 million to $730 million for NGL projects through 2013.
- 2Key project includes a new 525- to 615-mile NGL pipeline (Bakken Pipeline) transporting unfractionated NGLs from the Bakken Shale to the Overland Pass Pipeline.
- 3Initial capacity of the Bakken Pipeline is planned at 60,000 bpd, with potential to increase to 110,000 bpd through additional pump facilities.
- 4Investment includes $35 million to $40 million for ONEOK Partners' 50% interest in the Overland Pass Pipeline, increasing its capacity.
- 5Expansion of fractionation capacity at Bushton, Kansas, by 60,000 bpd to a total of 210,000 bpd is planned, costing $110 million to $140 million.
- 6Construction for the Bakken Pipeline is expected to begin in Q2 2012 and be completed in H1 2013.
- 7The projects aim to accommodate growing NGL production from the Bakken Shale and other Rockies supply sources.