•  
  •  
  •  
  •  
  •  
  • Untitled Document
    Untitled Document

    ONEOK Partners to invest up to $240 million in Cana-Woodford Shale and Granite Wash

    On Dec. 15, Tulsa-based ONEOK Partners LP said it plans to invest $180 million to $240 million between now and the first half of 2012 for natural gas liquids (NGL) projects in the Cana-Woodford Shale and Granite Wash plays. When completed, the projects are expected to add approximately 75,000 to 80,000 barrels per day (bpd) of raw, unfractionated NGLs to the partnership’s existing NGL gathering systems in the Mid-Continent and the Arbuckle Pipeline.

    “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, COO for ONEOK Partners. “Our Arbuckle Pipeline plays an integral role in our ability to deliver NGLs to the Mont Belvieu (Texas) market center.”

    This investment includes:

    · Constructing more than 230 miles of 10- and 12-inch diameter NGL pipelines that will expand the partnership’s existing Mid-Continent NGL gathering system in the Cana-Woodford and Granite Wash areas by connecting to three new third-party natural gas processing facilities being constructed with total capacity of 510 million cubic feet per day (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 aggregate, these projects are expected to generate EBITDA (earnings before interest, taxes, depreciation, and amortization) multiples of four to six times. The incremental fee-based earnings from these projects are expected to increase distributable cash flow and value to unit-holders.

    ONEOK Partners owns a natural gas liquids system in the Mid-Continent and Gulf Coast, which includes fractionators and storage in Mont Belvieu, Texas; Bushton, Conway, and Hutchinson, Kan.; and Medford, Okla. It also owns interstate natural gas liquids distribution pipelines between Conway and Mont Belvieu, and NGL and refined petroleum products distribution pipelines that connect its Mid-Continent NGL infrastructure to Midwest markets, including Chicago.

    In addition to these projects, the partnership has already announced in 2010 approximately $1.3 billion to $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- to 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, Kan.;

    · Related capacity expansions for ONEOK Partners' 50-percent 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, Kan., 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.

    Source:  ONEOK Partners

    Most Popular

    Related Articles

    Blue Racer Midstream provides update on operations in Utica, Marcellus

    06/24/2015 Over the course of the past year, Blue Racer’s processed volumes have more than tripled to their current level of 650 MMcf/d, while total gathered volumes, including lean gas, have more than double...

    ExxonMobil sells share of Chalmette Refining in Louisiana

    06/19/2015

    ExxonMobil has reached an agreement with PBF Energy Inc. for the sale and purchase of its 50% interest in Chalmette Refining LLC in Chalmette, Louisiana.

    GIP II and Hess form midstream Bakken JV

    06/15/2015 Global Infrastructure Partners (GIP) says that its second fund, Global Infrastructure Partners II, and affiliated funds, have agreed to enter into a strategic joint venture with Hess Corp. through ...

    Hess to sell interest in Bakken midstream assets and form new JV

    06/11/2015 Hess Corp. has agreed to sell a 50% interest in its Bakken midstream assets to Global Infrastructure Partners for cash consideration of $2.675 billion. Hess and Global Infrastructure Partners will ...

    ETP purchases pipeline system from EdgeMarc Energy

    06/09/2015 Energy Transfer Partners LP has provided further details on its previously announced Revolution Project that will increase its operations in the growing Marcellus and Upper Devonian production area...

    Enterprise acquires Eagle Ford midstream assets

    06/05/2015 Enterprise Products Partners LP has executed definitive agreements to purchase all of the member interests in EFS Midstream LLC from affiliates of Pioneer Natural Resources Co. and Reliance Industr...

    More Oil & Gas Financial Articles

    Blue Racer Midstream provides update on operations in Utica, Marcellus

    Wed, Jun 24, 2015

    Over the course of the past year, Blue Racer’s processed volumes have more than tripled to their current level of 650 MMcf/d, while total gathered volumes, including lean gas, have more than doubled to over 825 MMcf/d.

    ExxonMobil sells share of Chalmette Refining in Louisiana

    Fri, Jun 19, 2015

    ExxonMobil has reached an agreement with PBF Energy Inc. for the sale and purchase of its 50% interest in Chalmette Refining LLC in Chalmette, Louisiana.

    GIP II and Hess form midstream Bakken JV

    Mon, Jun 15, 2015

    Global Infrastructure Partners (GIP) says that its second fund, Global Infrastructure Partners II, and affiliated funds, have agreed to enter into a strategic joint venture with Hess Corp. through the acquisition of a 50% interest in Hess Infrastructure Partners, the owner of Hess’s midstream crude oil and natural gas infrastructure assets located primarily in the Bakken shale play.

    Hess to sell interest in Bakken midstream assets and form new JV

    Thu, Jun 11, 2015

    Hess Corp. has agreed to sell a 50% interest in its Bakken midstream assets to Global Infrastructure Partners for cash consideration of $2.675 billion. Hess and Global Infrastructure Partners will create a premier midstream joint venture – Hess Infrastructure Partners.

    ETP purchases pipeline system from EdgeMarc Energy

    Tue, Jun 9, 2015

    Energy Transfer Partners LP has provided further details on its previously announced Revolution Project that will increase its operations in the growing Marcellus and Upper Devonian production areas of Western Pennsylvania. ETP has entered into long-term gas gathering, processing, and fractionation agreements with EdgeMarc Energy.

    OGFJ photo of the day


    Click to view slideshow

    Oil & Gas Jobs

    Search More Job Listings >>
    Subscribe to OGFJ