ONEOK to build natural gas processing plant
BY ROD WALTON World Staff Writer
Friday, April 20, 2012
4/20/12 at 4:10 AM
ONEOK Partners LP will build a $190 million natural gas processing plant in central Oklahoma's Cana-Woodford Shale, the Tulsa-based company announced Thursday.
The new Canadian Valley plant in Canadian County should process up to 200 million cubic feet per day of natural gas. Completion is expected by the first quarter of 2014.
ONEOK Partners also plans to spend another $160 million on upgrading its gathering and compression infrastructure in the Cana-Woodford. Once completed, the company's gathering and processing capacity will reach 390 million cubic feet daily in the region.
"Additional natural gas processing infrastructure is necessary to accommodate increased production of liquids-rich natural gas in the Cana-Woodford Shale where we have substantial acreage dedications from active producers," ONEOK Partners Chief Operating Officer Pierce H. Norton said in a statement.
"The new Canadian Valley plant will be located in the center of the prolific Cana-Woodford Shale and in close proximity to the partnership's existing natural gas and natural gas liquids pipelines."
ONEOK Partners altogether has announced between $4.7 billion to $5.7 billion in growth projects through 2015. Those include natural gas gathering and processing, natural gas liquids and crude-oil infrastructure.
The board of directors also voted to increase the partnership's cash distribution to 63.5 cents per unit for the first quarter. The payout, a 2.5-cent increase over the previous 61 cents, will be made May 15 to unitholders of record at the close of business April 30.
ONEOK Partners owns and operates 1,300 miles of natural gas transmission lines, 11 storage facilities, 4,100 miles in NGL pipelines, interest in four fractionation plants and 26.5 million barrels in NGL storage capacity.
ONEOK Partners growth projects
December 2010: 230 miles of NGL pipeline for Mid-Continent and additional pump stations for Arbuckle Pipeline from southern Oklahoma to the Texas Gulf Coast. Price tag: $180 million to $240 million.
January 2011: Stateline II natural gas processing plant in Williams County, N.D., for adding 100 million cubic feet in daily capacity in Bakken Shale. Price tag: $260 million to $305 million.
May 2011: 570-mile natural gas liquids pipeline from Medford to Mont Belvieu, Texas. Price tag: $1.2 billion.
April 5, 2012: 270-mile natural gas gathering system planned in Bakken Shale region of North Dakota. Price tag: $160 million.
April 9: ONEOK Partners enters crude oil business with Bakken Crude Express Pipeline from Stanley, N.D., in Bakken Shale to the Cushing hub. Price tag: $1.5 billion to $1.8 billion.
Thursday: New natural gas processing plant in Canadian County and expansion to gathering and compression in the Cana-Woodford Shale. Price tag: $350 million.
Original Print Headline: ONEOK to build plant to process natural gas
Rod Walton 918-581-8457