Summary
ONEOK Inc. (OKE) announced on April 25, 2019, a strategic expansion to its natural gas liquids (NGL) infrastructure with plans to construct a new pipeline lateral. This new lateral will connect the northern segment of the Bakken NGL Pipeline to a third-party natural gas processing plant located in North Dakota. This development is significant as it aims to enhance ONEOK's ability to gather and transport NGLs from the prolific Bakken region, potentially increasing fee-based revenue and operational efficiency.
Key Highlights
- 1ONEOK announced the construction of a new natural gas liquids (NGL) pipeline lateral on April 25, 2019.
- 2The new lateral will connect the Bakken NGL Pipeline to a third-party natural gas processing plant in North Dakota.
- 3This expansion targets the northern portion of the Bakken region, a key NGL producing area.
- 4The project is expected to enhance ONEOK's NGL gathering and transportation capacity.
- 5This move signals continued investment in infrastructure to support producer activity in the Bakken.
- 6The announcement was made via a press release, filed as an exhibit to the 8-K.
Frequently Asked Questions
The new pipeline lateral is intended to connect ONEOK's Bakken NGL Pipeline to a third-party natural gas processing plant in North Dakota, thereby increasing the capacity to gather and transport natural gas liquids from the northern Bakken region.
This expansion is expected to enhance ONEOK's fee-based NGL transportation services, capture additional NGL volumes from producers in the Bakken, and improve operational flexibility by providing direct access to processing capacity.
Connecting to a third-party processing plant allows ONEOK to leverage existing infrastructure and provide a more comprehensive service offering to NGL producers in the area, potentially capturing more NGLs that would otherwise be stranded or require longer transport routes.
This 8-K filing primarily announces the construction plan for the pipeline lateral. It does not include specific financial figures, cost estimates for the project, or revised financial guidance from ONEOK at this time. Further details may be provided in subsequent filings or investor communications.