ONEOK’s Contribution
ONEOK (NYSE: OKE) has announced plans to expand its natural gas pipeline infrastructure in the Permian Basin and Oklahoma by 1.7 Bcf/d.
The project will include:
- 150 MMcf/d of ONEOK’s WesTex Transmission system from the Permian to interstate pipeline points in the Texas panhandle and a possible expansion of up to 450 MMcf/d, dependent upon a follow up open season.
- 150 MMcf/d eastbound expansion of the ONEOK Gas Transportation system from two natural gas processing plants located in the SCOOP/STACK to an eastern Oklahoma interstate delivery point.
- 100 MMcf/d westbound expansion of ONEOK Gas Transportation from the STACK area to multiple interstate pipeline delivery points in western Oklahoma and a possible expansion of up to 300 MMcf/d, dependent upon a follow up open season.
- A project to make Roadrunner Gas Transmission bidirectional, resulting in approximately 750 MMcf/d eastbound capacity from the Delaware Basin to the Waha area, which is currently in an open season.
An adjusted EBITDA from these projects is expected to be as high as $40 million if all goes well.
The westbound expansion of ONEOK Gas Transportation is expected to be completed in Q4 2018. The other three expansions are expected to be completed by Q1 2019.
Current ONEOK Permian Pipeline; Source ONEOK
ONEOK’s Projects
- ONEOK WesTex Transmission: an intrastate natural gas pipeline system operating within Texas, consisting of approximately 2,200 miles of pipeline.
- ONEOK Gas Transportation: an intrastate natural gas pipeline system in Oklahoma, consisting of approximately 2,470 miles of transmission pipelines.
- Roadrunner: a 50-50 joint venture between ONEOK and Fermaca Infrastructure B.V. (Fermaca), is a Texas intrastate pipeline system transporting natural gas from the Waha natural gas market hub to El Paso markets and to the U.S. and Mexico border.
EPIC NGL
EPIC Midstream Holdings, LP today announced the completion of Phase Two of the EPIC Natural Gas Liquids (“NGL”) Pipeline just a mere three months after the completion of phase one that began in December of 2017. The NGL project now has 205 of the total 700 miles operational and runs from DLK Black River Midstream to Benedum, Texas.
The NGL pipeline is now connected to five processing complexes with a total capacity of one billion cubic feet.
Phase three will now commence, which will run from Benedum to corpus Christi, Texas.
Upon completion the pipeline will have a throughput capacity of over 440,000 barrels per day with multiple origin points in the Delaware and Midland Basins.
The EPIC NGL Pipeline is backed by capital commitments from funds managed by the Private Equity Group of Ares Management, L.P. (NYSE: ARES) and will run side by side with the EPIC Crude Oil Pipeline.
