NEW YORK Oneok Partners LP has earmarked between $465 million and $500 million for a new natural gas processing facility, a new pipeline and upgrades to existing infrastructure.
The 100-cubic-feet-per-day plant will be built in eastern McKenzie County, N.D., an area that includes the Bakken Shale and Three Forks formation. It is expected to be operational in the first quarter of 2015, the company said.
Construction costs are pegged at $325 million to $360 million.
The Tulsa, Okla.-based company is also investing $140 million in a 95-mile natural gas pipeline that will connect its facilities in Hutchinson, Kan., and Medford, Okla., and is upgrading the fractionation infrastructure at its Hutchinson, Kan., facility to accommodate lighter, unfractionated natural gas liquids (NGLs) produced in the Williston Basin.
"The new Garden Creek III plant increases our natural gas processing capacity to meet producers needs in the Williston Basin, and the expansion of our downstream NGLs infrastructure will offer additional fractionation and transportation capacity for NGLs coming from the region," Pierce H. Norton, executive vice president of commercial, said.
The partnership has announced $4.7 billion to $5.3 billion in investments through 2015 for infrastructure growth projects related to natural gas gathering and processing, Oneok said.
The company recently canceled a $1.8-billion project to build a 1,300-mile crude oil pipeline, citing lack of interest by potential customers (amm.com, Nov. 28).