ONEOK to construct additional NGL infrastructure

ONEOK Inc. announced plans to construct additional natural gas liquids (NGL) and natural gas infrastructure.

The plans include:

• The construction of a new 125,000-barrel-per-day (bpd) NGL fractionator in Mont Belvieu, Texas;
• A new 200-million-cu.-ft.-per-day natural gas processing facility in the Williston Basin;
• An extension of its Arbuckle II NGL pipeline farther north to increase capacity between the mid-continent market hub and Arbuckle II;
• An expansion of the Arbuckle II pipeline by about 100,000 bpd to increase total capacity up to 500,000 bpd by adding pump stations.

According to the company, these projects are expected to generate adjusted earnings before interest, taxes, depreciation and amortization by multiples of four to six times. It does not expect any equity issuances in 2018 or well into 2019.

“Continued production growth across the basins ONEOK serves requires additional NGL fractionation and natural gas processing capacity,” says Terry Spender, president and CEO of ONEOK. “Producers are looking for increased connectivity with the Mont Belvieu market center and ONEOK is competitively positioned to provide it. Recently constructed volumes support the MB-5 fractionator project, with increasing NGL production providing an opportunity for ONEOK to potentially build a future MB-6 fractionator in Mont Belvieu.”

*Featured image: iStock.com/tttuna