A subsidiary of EnLink entered into a long-term, fee-based agreement with a subsidiary of ONEOK to move NGLs from EnLink’s premier central Oklahoma position to EnLink’s Cajun-Sibon platform and the Mont Belvieu, TX trading and storage hub.
NGL volumes from EnLink’s Chisholm processing complex will directly connect to EnLink’s Louisiana franchise, allowing EnLink to preferentially fill its Cajun-Sibon platform and providing new access to the growing Gulf Coast NGL hub. EnLink’s Central Oklahoma NGLs will be transported through ONEOK’s Arbuckle and Sterling systems, which ONEOK plans to expand by the end of 2018 to handle the incremental volumes.
The flexibility built into the agreement benefits EnLink’s long-term strategic growth plan by allowing EnLink to retain control of volumes and optimize current operations and future opportunities.
“We evaluated many options to move NGLs to the Gulf Coast, including building our own pipeline, and this deal was the most economic, secure, and flexible for EnLink and our customers,” said Barry E. Davis, EnLink Chairman and CEO.