Oneok Investing More In Bakken Midstream Infrastructure

Oneok North Dakota Bakken Asset Map
Oneok North Dakota Bakken Asset Map

Oneok is planning another $650-780 million in infrastructure investments in the Bakken.

The company will expand its Bakken NGL Pipeline, expand gathering & compression in the area, and build a seventh NGL processing plant in McKenzie County, ND.

Oneok will spend $100 million to expand the Bakken NGL pipeline that came online in April of 2013. The pipeline was originally planned with capacity of 60,000 b/d and is currently being expanded to 135,000 b/d. This will mark the second expansion and grow capacity to 160,000 b/d.

The Lonesome Creek processing plant (200 mmcfd) will have a price tag of $320-390 million and the expansion of gathering infrastructure is estimated to cost $230-290 million.

“Production in the Williston Basin continues to increase with no signs of leveling off or slowing,” said Terry K. Spencer, president. “The new Lonesome Creek plant and related infrastructure will be well-positioned to capitalize on existing ONEOK Partners assets and provide producers in the area with essential natural gas processing capacity....”

Oneok will have approximately 800 mmcfd of processing capacity in North Dakota when the Lonesome Creek Plant is completed.

Three of the seven planned plants are yet to be completed. The Garden Creek II and III are under construction and ground will be broken on the Lonesome Creek Plant soon.

  1. Grasslands (90 mmcfd)
  2. Garden Creek I (100 mmcfd) online December 2011
  3. Stateline I (100 mmcfd) completed September 2012
  4. Stateline II (100 mmcfd) expected April 2013
  5. Garden Creek II (100 mmcfd) expected completion Q3 2014
  6. Garden Creek III (100 mmcfd) expected completion Q1 2015
  7. Lonesome Creek (200 mmcfd) expected in late 2015

 

Oneok's Bakken NGL Pipeline & Stateline Processing Plant Open

Oneok Bakken Investments
Oneok Bakken Investments

Oneok Partners recently announced the opening of two major growth projects in the Bakken. As of April 9, 2013, both the Bakken NGL Pipeline and the Stateline II natural gas processing plant are running. When fully complete, the projects will account for as much as $800 million in investments.

The opening follows a recent announcement of plans to build a $325-360 million Garden Creek III plant. You can read more about the latest expansion in the article Oneok's Bakken Processing Expanding Through Garden Creek III

Bakken NGL Pipeline

The Bakken NGL Pipeline is a $450-550 million, 600-mile pipeline from the Williston Basin to an interconnect with the Overland Pass Pipeline in Colorado. The pipeline has the capacity to move 60,000 b/d of unfractionated NGLs and will ultimately move 135,000 b/d once additional pump stations are installed. The pump station installations will be completed in the third quarter of 2014 and have a price tag of $100 million.

"The Bakken NGL Pipeline is the first pipeline to transport natural gas liquids from the Williston Basin to NGL fractionation and storage infrastructure in the Mid-Continent and Texas Gulf Coast," said Terry K. Spencer, president of ONEOK Partners. "This project and our continued investments in the Williston Basin reflect our commitment to provide producers with the essential NGL infrastructure needed as they continue to develop the Bakken Shale and Three Forks formations."

Stateline II Natural Gas Processing Plant

The Stateline II plant is a $135-150 million, 100 mmcfd processing plant in Western Williams County, ND. The plant represents the fourth of six processing plants planned or in operation. Oneok's processing capacity is now 390 mmcfd and will ultimately grow to 590 mmcfd in the first quarter of 2015.

"The completion of Stateline II, along with our other two plants and associated infrastructure that are operational, will reduce the flaring of natural gas in the region, enabling producers to deliver natural gas to customers and improve the environment," Spencer added.

This leaves only two of the six plants remaining to be completed. The Garden Creek II and III plants are under construction in eastern McKenzie County, ND.

  1. Grasslands (90 mmcfd)
  2. Garden Creek I (100 mmcfd) online December 2011
  3. Stateline I (100 mmcfd) completed September 2012
  4. Stateline II (100 mmcfd) expected April 2013
  5. Garden Creek II (100 mmcfd) expected completion Q3 2014
  6. Garden Creek III (100 mmcfd) expected completion Q1 2015