ONEOK Plans Second Expansion of West Texas LPG Pipeline System

Tulsa, Okla.-based ONEOK said it will invest $295 million to expand its West Texas LPG pipeline system, which provides natural gas liquids takeaway capacity for Permian Basin producers.

West Texas LPG Pipeline system (source: ONEOK)

The expansion, to be completed in the first quarter of 2020, includes four new pump stations, upgrades to two existing pumps and pipeline looping that will boost the system’s mainline capacity 80,000 bpd.  It is supported by long-term, dedicated NGL production from six third-party gas processing plants that are expected to produce up to 60,000 bpd.

It will be ONEOK's second expansion of the West Texas LPG system. The company expects to finish construction this month of a mainline expansion and 110,000 bpd lateral extension into the Delaware Basin.

The upcoming expansion will include infrastructure to connect with ONEOK's announced Arbuckle II Pipeline, which will transport up to 400,000 bpd from the company's Oklahoma supply basins and NGL gathering system to its storage and fractionation facilities at Mont Belvieu, Texas.  The 530-mile Arbuckle II is also slated for completion in the first quarter of 2020.

ONEOK recently paid $195 million to Martin Midstream Partners for complete control of the West Texas LPG Pipeline, which includes 2,600 miles of NGL pipeline and provides transportation from nearly 40 Permian Basin processing plants to Mont Belvieu.

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