ONEOK has unveiled plans to construct a new pipeline and related infrastructure to transport natural gas liquids (NGLs) from the Rocky Mountain region to the company’s existing Mid-Continent NGL facilities in the US, with a proposed investment of around $1.4bn.
The 900-mile, 20-inch diameter Elk Creek pipeline is expected to be completed by the end of 2019.
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With an estimated capacity to transport up to 240,000 barrels per day (bpd) of unfractionated NGLs, the pipeline will link the company’s Riverview terminal in eastern Montana to Bushton, Kansas.
Furthermore, the pipeline will have the capability to increase the transportation capacity to 400,000bpd with additional pump facilities.
The project is part of the company’s potential capital-growth projects lined up with costs ranging from $3bn to $3.5bn.
ONEOK president and CEO Terry Spencer said: “Additional NGL takeaway capacity is critical to meeting the needs of producers who are increasing production and are required to meet natural gas capture targets in the Williston Basin.
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By GlobalData“The Elk Creek pipeline will strengthen ONEOK’s position in the high-production areas of the Bakken, Powder River and Denver-Julesburg regions and also provide additional reliability and redundancy on our NGL system.”
The company has secured long-term contracts for the pipeline with terms ranging between ten to 15 years, totalling around 100,000bpd.
Around $1.2bn of the $1.4bn investment will be allocated for the pipeline, while related infrastructure is expected to cost around $200m.
