US-based energy midstream service provider Oneok is set to invest $100m to build a 75-mile extension of the Bakken natural gas liquids (NGL) pipeline.
The extension will connect the pipeline with a third-party natural gas processing plant in eastern Williams County, North Dakota.
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The construction of the project will facilitate transportation of NGL to Williams County, which has limited shipment options. It will also provide connectivity with key NGL market centres.
The extension is expected to be completed in the fourth quarter of 2020.
Oneok noted that the construction of the lateral is supported by long-term dedicated NGL production with a minimum volume commitment.
It will deliver the NGLs to Oneok’s Elk Creek Pipeline, which will be a 900-mile, 20in-diameter pipeline with the capacity to transport 180,000bpd of unfractionated NGLs.
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By GlobalDataThe company is currently engaged with multiple regional producers and processors to secure additional NGL supply commitments.
Oneok owns major natural gas liquids systems, including gathering, processing, storage and transportation infrastructures in the US.
Overall, the company operates a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities across the Mid-Continent, Williston, Permian and Rocky Mountain regions.
The Bakken NGL is a 600-mile pipeline with the capacity to transport 60,000bpd of unfractionated NGLs.
Last September, Oneok announced plans to invest $1.5bn to build additional NGL and natural gas infrastructure in the US.
