Summary
ONEOK, Inc., through its subsidiary ONEOK Partners, L.P., announced a significant capital investment plan on April 9, 2012, signaling a substantial expansion in its crude oil transportation infrastructure. The company intends to invest between $1.5 billion and $1.8 billion by 2015 to construct the Bakken Crude Express Pipeline, a 1,300-mile system designed to transport 200,000 barrels per day of light-sweet crude oil. This strategic initiative focuses on connecting production from the prolific Bakken Shale in North Dakota directly to the critical crude oil market hub in Cushing, Oklahoma. The pipeline's development underscores ONEOK Partners' commitment to capitalizing on the growing production from shale plays and providing essential midstream services to producers. This expansion is expected to enhance the company's fee-based revenue streams and solidify its position in the energy infrastructure sector.
Key Highlights
- 1ONEOK Partners, L.P. is investing $1.5 billion to $1.8 billion by 2015.
- 2The investment will fund the construction of a 1,300-mile crude-oil pipeline.
- 3The pipeline, named Bakken Crude Express, will have a capacity of 200,000 barrels per day.
- 4It will transport light-sweet crude oil from the Bakken Shale in North Dakota.
- 5The pipeline's destination is the Cushing, Oklahoma crude-oil market hub.
- 6This represents a significant expansion of ONEOK's midstream infrastructure.