February 2011, Vol. 238 No. 2

Projects

ONEOK Partners To Invest $240 Million In NGL Projects

ONEOK Partners, L.P. plans to invest $180-240 million over the next 18 months for natural gas liquids (NGL) projects.

When completed, the projects are expected to add 75,000-80,000 bpd of raw, unfractionated NGLs to the partnership’s existing Mid-Continent NGL network in Oklahoma and the Arbuckle Pipeline that extends from southern Oklahoma through the Barnett Shale of north Texas and on to ONEOK Partners’ and other Gulf Coast-area fractionation and storage facilities.

“These projects increase our ability to transport raw NGLs from these two important supply areas and better meet the needs of our customers,” said Terry K. Spencer, ONEOK Partners chief operating officer. “Arbuckle Pipeline plays an integral role in our ability to deliver NGLs to the Mont Belvieu market center.”
This investment includes: Constructing more than 230 miles of 10- and 12-inch NGL pipelines that will expand the partnership’s existing Mid-Continent NGL gathering system in the Cana-Woodford area in western Oklahoma and the Granite Wash area in the Texas Panhandle by connecting to three new third-party natural gas processing facilities being built with total capacity of 510 MMcf/d; and to three existing third-party natural gas processing facilities that are being expanded; and
• Installing additional pump stations on the Arbuckle Pipeline to increase its capacity to 240,000 bpd. The Arbuckle Pipeline is a 440-mile NGL pipeline that extends from southern Oklahoma through the Barnett Shale of north Texas and on to the partnership’s fractionation and storage facilities at Mont Belvieu on the Texas Gulf Coast.

These projects are expected to be completed during the first half of 2012. The additional raw NGLs from these natural gas processing plants will be fractionated at either the partnership’s fractionation facilities or by third parties.

In addition to these projects, the partnership has already announced $1.6 billion in growth projects that include:
• Construction of two 100 MMcf/d natural gas processing facilities in the Bakken Shale in the Williston Basin in North Dakota, and related infrastructure;
• Construction of a 525-615-mile NGL pipeline to transport unfractionated NGLs produced from the Bakken Shale in the Williston Basin to the Overland Pass Pipeline, a 760-mile NGL pipeline extending from southwestern Wyoming to Conway, KS;
• Related capacity expansions for ONEOK Partners’ 50% interest in the Overland Pass Pipeline to transport the additional unfractionated NGL volumes from the new Bakken Pipeline;
• Expansion of the partnership’s fractionation capacity at Bushton, KS, by 60,000 bpd to accommodate the additional NGL volumes from Overland Pass Pipeline;
• Installation of seven additional pump stations along the existing Sterling I NGL distribution pipeline, increasing its capacity by 15,000 bpd; and
• Other investments in the Woodford Shale in Oklahoma, with projects in both the natural gas gathering and processing and the natural gas liquids segments.

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