Gas gathering, growth projects driving ONEOK investments.


A Pipeline & Gas Journal Staff Report

In recent weeks, ONEOK Partners has announced multimillion-dollar investment plans in both North Dakota and Oklahoma for natural gas gathering, processing and growth projects related to resource development.

The company's North Dakota plans call for $605-785 million to be invested between now and the third quarter of 2016 to:

* Build a 200 MMcf/d natural gas processing facility--the Demicks Lake plant --and related infrastructure in northeast McKenzie County, ND which will process natural gas produced from the Bakken Shale in the Williston Basin;

* Construct more natural gas compression to take advantage of additional natural gas processing capacity at the partnership's existing and planned Garden Creek and Stateline gas processing plants in the Williston Basin by a total of 100 MMcf/d; and

* Build 12 miles of NGL gathering pipeline from the Demicks Lake plant to the partnership's existing Bakken NGL pipeline. "The Demicks Lake plant and additional natural gas compression will increase our natural gas processing capacity in areas that continue to be developed aggressively by crude oil and natural gas producers," said Terry K. Spencer, president and CEO of ONEOK Partners. "The additional 300 MMcf/d in the Williston Basin will increase our natural gas processing capacity to approximately 1.1 Bcf/d in the region. Pending board approval, we expect to announce additional Williston Basin natural gas processing capacity by the end of this year."

The Garden Creek III natural gas processing plant, originally scheduled for completion in the first quarter 2015, is ahead of schedule and slated for completion later this year, he said.

"The completion of this plant, now a 120 MMcf/d natural gas processing facility with the additional capital investment in compression, combined with other ongoing investments in the Williston Basin, will provide the partnership with additional natural gas and NGL volumes while also creating long-term value for our unitholders," said Spencer.

Since 2010, ONEOK Partners has constructed or is constructing seven natural gas processing plants and related gas gathering infrastructure in the Williston Basin, which will increase the partnership's gas processing capacity in the region by more than 10 times by the end of 2016 compared with 2010.

The Demicks Lake natural gas processing plant and related infrastructure are expected to cost $515-670 million and be completed during the...

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