ONEOK Partners Plans Investments For Williston Basin

January 2014, Vol. 241 No. 1

ONEOK Partners, L.P. will invest as much as $780 million between now and the second quarter 2016 to build a 200 MMcf/d natural gas processing facility – the Lonesome Creek plant – and related infrastructure in McKenzie County, ND in the Bakken Shale in the Williston Basin; and complete a second expansion of the Bakken NGL Pipeline, which will increase the pipeline’s capacity to 160,000 bpd from 135,000 bpd.

“Production in the Williston Basin continues to increase with no signs of leveling off or slowing,” said Terry K. Spencer, president, ONEOK Partners. “This additional expansion of our Bakken NGL Pipeline will allow us to transport additional NGL volumes from the Lonesome Creek plant to our Mid-Continent NGL infrastructure.”

The Lonesome Creek plant is expected to cost $320-390 million. When complete, the plant will be the partnership’s largest natural gas processing site in North Dakota and will increase the partnership’s total natural gas processing capacity there to 800 MMcf/d.
ONEOK also expects to invest $230-290 million for related expansions and upgrades to its existing natural gas gathering and compression infrastructure. The Lonesome Creek plant and related infrastructure are expected to be completed by the end of 2015 and will be supported by acreage dedications from producers.

To accommodate NGL volumes produced from the Lonesome Creek plant, $100 million will be spent to increase capacity on its Bakken NGL Pipeline, a 600-mile pipeline completed in April 2013 that transports unfractionated NGLs produced in the Williston Basin to the partnership’s 50%-owned Overland Pass Pipeline.

This second expansion of the Bakken NGL Pipeline, which is expected to be complete during the first half of 2016, will increase its capacity to 160,000 bpd to accommodate NGL volumes from the Lonesome Creek plant.

The Bakken NGL Pipeline is being expanded to 135,000 bpd from an original capacity of 60,000 bpd and is expected to be completed in the third quarter.

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