TULSA — ONEOK Partners has completed three large natural gas and natural gas liquids projects as part of its ongoing growth program expected to be completed in 2015 and cost up to $5.3 billion.
“These investments demonstrate our ongoing commitment to build the necessary natural gas and NGL (natural gas liquids) infrastructure to better serve our producers and customers,” ONEOK Partners President Terry K. Spencer said in a statement Tuesday. “We completed each of these projects on time and on budget, and the assets now are delivering essential services to our producers and customers.”
The Bakken Natural Gas Liquid Pipeline is a $450 million to $500 million, 600-mile pipeline that can transport up to 60,000 barrels per day of unprocessed natural gas liquids from the Williston Basin in North Dakota and Montana to the existing Overland Pass Pipeline in northern Colorado. The product will then connect with ONEOK Partners' Mid-Continent processing and storage facilities in central Kansas.
The partnership is still working on a $100 million upgrade to the new line that will boost its capacity to 135,000 barrels per day by the third quarter of 2014.
ONEOK Partners also announced the completion of its 100 million-cubic-feet-per day Stateline II natural gas processing facility in western William County, N.D. The up to $150 million plant is the third natural gas processing facility ONEOK Partners has completed in the area since late 2011.
“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 said.
In many cases throughout the Bakken and other newer oil plays, producers are focusing on recovering more valuable oil and are burning off some of the natural gas until pipelines are in place.
Oklahoma City-based Continental Resources Inc. is the largest producer of oil and natural gas in the Bakken. The company said in February that new pipelines and improved infrastructure allowed it to reduce the percentage of flared natural gas production by 50 percent in 2012. As of the end of the year, Continental still was flaring about 10 percent of its Bakken production.
The processing facility is part of ONEOK Partners' previously announced $1.7 billion to $1.9 billion investment for natural gas gathering and processing projects in the area by 2015.
Besides the Bakken infrastructure, ONEOK Partners also said it has completed a $23 million, 12-inch pipeline that will allow it to transport up to 400,000 barrels per day of processed natural gas liquids from its facilities in the Houston area to petrochemical customers.