ONEOK Partners, L.P. Thursday announced plans to invest another $260 million to $305 million between now and the end of 2014 for additional projects in the Bakken Shale in the Williston Basin. This in addition to a new natural gas pipeline they intend to build between now and 2013 which which will originate in Sidney and travel through Fallon, Wibaux, and Carter counties on into Wyoming and northern Colorado, where it will connect to the existing Overland Pass Pipeline.
The processing facility will be near the pipeline origination on the North Dakota side of the state line. The company announced they will invest between $135 million to $150 million for the construction of a new 100 million cubic feet per day (MMcf/d) natural gas processing facility — the Stateline II plant — in western Williams County, N.D. — which is expected to be in service in the first half of 2013.
In addition to the investments for the Stateline II plant, ONEOK Partners also expects to invest approximately $80 million to $110 million for expansions and upgrades to its existing gathering and compression infrastructure. ONEOK Partners also expects to invest approximately $45 million between now and the end of 2014 for new well connections associated with the Stateline II facility.
Terry K. Spencer, ONEOK Partners chief operating officer explained “The rapidly increasing crude-oil drilling activity in the region necessitates additional capacity to gather and process the growing natural gas liquids-rich natural gas volumes. With more than 1.5 million acres dedicated to our facilities, we are well positioned to meet the needs of producers who are continuing to aggressively develop the Bakken and Three Forks formations.”
The partnership previously announced plans to construct two other new natural gas processing facilities in the region — the Garden Creek and Stateline I plants. When completed, the combined natural gas processing capacity of the Stateline II plant, the Garden Creek plant, the Stateline I plant and the existing Grasslands natural gas processing facility will be approximately 400 MMcf/d, nearly quadrupling the partnership’s current processing capacity in the Williston Basin.
The Stateline II plant will be constructed adjacent to the previously announced Stateline I natural gas processing facility, which is expected to be in service during the third quarter of 2012. The Garden Creek plant is expected to be in service during the fourth quarter of 2011. When completed, the products produced by the plant will be sent through the pipeline they are building from Sidney.
The investment ONEOK is putting into the region is significant – between 1.5 and 1.8 billion dollars.
ONEOK Partners is the largest independent operator of natural gas gathering and processing facilities in the Williston Basin, with a gathering system of more than 3,500 miles.