Tulsa-based Oneok Inc. is expanding its natural gas and natural gas liquids (NGL) infrastructure in North Dakota and West Texas with “low-cost, capital-efficient projects” that meet its customers needs, the company said Thursday.
Oneok plans to boost capacity by 200 MMcf/d at its Bear Creek natural gas processing facility and related infrastructure in Dunn County, ND. The $405 million expansion, which is supported by Williston Basin acreage dedications with primarily fee-based contracts, is expected to be completed in 1Q2021.
"The Bear Creek plant expansion in North Dakota will provide needed processing capacity for producers actively developing the high-growth area of Dunn County while also helping to address natural gas flaring in the state," CEO Terry Spencer said.
Oneok’s Williston Basin gas processing capacity will increase to more than 1.6 Bcf/d following the completion of the expansion. The expansion is expected to produce about 25,000 b/d of NGLs in ethane rejection, resulting in 225,000 b/d of raw feed contracted since the announcement of the Elk Creek Pipeline.
The midstream company is also increasing NGL fractionation by 65,000 b/d at its Midcontinent facility, as well as adding NGL infrastructure to increase capacity between the Elk Creek and Arbuckle II pipelines. At an estimated cost of $150 million, the project is expected to bring online 15,000 b/d in 3Q2020 and 50,000 b/d in 1Q2021.
In expectation of accelerating volume growth from the Williston and Powder River basins, additional infrastructure would be constructed to increase connectivity between the Elk Creek and Arbuckle II pipelines, the company said.
"These low-cost, capital-efficient expansions with attractive returns continue to demonstrate Oneok’s ability to incrementally grow with our customers to meet their needs," Spencer said.
Finally, the company plans to add 40,000 b/d to its West Texas liquefied petroleum gas (LPG) pipeline, which “underscores Oneok’s Permian Basin strategy to provide needed NGL transportation capacity to producers in the highly productive Delaware and Midland basins."
Since October 2017, Oneok has announced expansions totaling 160,000 b/d on its West Texas LPG line, including a 40,000 b/d expansion that was placed in service during the fourth quarter of 2018 and an additional expansion that is expected to be completed in 1Q2020.