ONEOK Partners, L.P.announced plans to invest approximately $465 million to $500 million between now and 2015 to:
Build a new 100 million cubic feet per day (MMcf/d) natural gas processing facility – the Garden Creek III plant and related infrastructure – in eastern McKenzie County, N.D., in the Williston Basin, which includes the prolific Bakken Shale and Three Forks formations;
Construct a new 95-mile natural gas liquids (NGL) pipeline between existing NGL fractionation infrastructure at Hutchinson, Kan., and Medford, Okla.; and
Modify the partnership's NGL fractionation infrastructure at Hutchinson, Kan., to accommodate lighter, unfractionated 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 NGL infrastructure will offer additional fractionation and transportation capacity for NGLs coming from the region," said Pierce H. Norton II, executive vice president, ONEOK Partners commercial. "These projects further demonstrate the value of ONEOK Partners' integrated operations and the increased flexibility they give us to better serve Williston Basin producers and downstream customers."
Construct Garden Creek III natural gas processing facility and related infrastructure:
The Garden Creek III natural gas processing plant and related infrastructure, including expansions and upgrades to the partnership's existing natural gas gathering systems and compression, are expected to cost approximately $325 million to $360 million and be in service during the first quarter of 2015. This new natural gas processing facility will be built near the partnership's existing Garden Creek I natural gas processing plant and the announced Garden Creek II natural gas processing plant, which is expected to be in service during the third quarter of 2014.
"The Garden Creek III plant, combined with our other ongoing investments in the Williston Basin, will provide the partnership with additional natural gas and NGL throughput and revenue capabilities," said Norton.
The partnership's previously announced Stateline II natural gas processing plant is expected to be in service during the first quarter of 2013. When completed, the natural gas processing capacities of the Garden Creek II and III plants, and the Stateline II plant combined with the existing Garden Creek, Stateline I and Grasslands natural gas processing facilities will be 590 MMcf/d in the Williston Basin.
ONEOK Partners is the largest independent operator of natural gas gathering and processing facilities in the Williston Basin, with a natural gas gathering system of more than 5,000 miles and acreage dedications of approximately 3.1 million acres.
