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Released May 04, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--ONEOK Incorporated (NYSE:OKE) (Tulsa, Oklahoma) executives point to an increasing number of U.S. natural gas processing plants as helping increase volumes on the company's pipeline network. In addition, ONEOK expects ethane rejection from its streams to drop as demand grows for the natural gas liquid (NGL) due to new petrochemical plants coming online. Industrial Info is tracking $380.7 million in ONEOK projects.
In a conference call regarding the company's first-quarter performance, Chief Executive Officer Terry Spencer said, "In the natural gas liquids segment, we expect increases in NGLs gathered and fractionated as a result of anticipated increases in ethane exports and the startup of new world-scale petrochemical facilities, as well as benefits from the ramp-up of recently connected natural gas processing plants and increased drilling activity."
The company's growth within the NGL market has ramped up and is anticipated to increase into next year. Spencer said: "We continue seeing the volume benefit from the six third-party natural gas processing plants connected to our system in 2016, and as expected, we connected three additional third-party plants to our system in the first-quarter 2017--one each in the Permian Basin, mid-continent and Rocky Mountain regions. We also remain on track to connect three additional plants this year, including two plants in the mid-continent and one in the Permian Basin. The total combined NGL production of these six new plants is expected to ramp up to approximately 30,000 barrels per day (BBL/d) by the end of 2017, and increase to approximately 40,000 BBL/d in 2018."
Another positive movement that ONEOK expects in the future is a drop in ethane rejection as demand increases. Ethane rejection on the company's NGL system fell to an average of more than 150,000 BBL/d in first-quarter 2017, compared to more than 175,000 BBL/d in first-quarter 2016. "We continue to expect ethane throughput to increase in the second half of the year, as demand increases from three new petrochemical plants coming online in the remainder of 2017 and capacity utilization increases at existing ethane export facilities," said Spencer.
ONEOK is keeping an eye toward future capital spending. "We are actively engaged in discussion with producers for long-term natural gas takeaway solutions in the Permian Basin and the STACK and SCOOP areas. In the Permian Basin, these projects could include an expansion of our Roadrunner Pipeline to provide more natural gas supply to Mexico or an expansion or extension of our ONEOK WesTex Pipeline system," said Spencer, adding there were also a number of viable expansion options in the STACK and SCOOP plays.
ONEOK's net income for first-quarter 2017 was $87.4 million, compared to $83.4 million in first-quarter 2016.
Among the top ONEOK projects being tracked by Industrial Info is the grassroot Roadrunner natural gas transmission loop in West Texas. A 205-mile, $330 million loop is being constructed on the line to transport up to 875,000 million standard cubic feet per day of natural gas from ONEOK's Coyanosa Waha Hub, which is southwest of Odessa, to a new border crossing connection near San Elizario, Texas, where it will connect with a pipeline in Chihuahua, Mexico. The project is expected to be completed in the third quarter of this year. For more information, see Industrial Info's project report.
Industrial Info also is tracking several maintenance projects at the company's natural gas processing plants. Among these is the planned major maintenance turnaround at the company's 125,000-BBL/d NGL Fractionation Plant MB-2 in Mont Belvieu, Texas. The 46-day turnaround is expected to take place in summer 2018 and has an estimated total investment value of $15 million. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
In a conference call regarding the company's first-quarter performance, Chief Executive Officer Terry Spencer said, "In the natural gas liquids segment, we expect increases in NGLs gathered and fractionated as a result of anticipated increases in ethane exports and the startup of new world-scale petrochemical facilities, as well as benefits from the ramp-up of recently connected natural gas processing plants and increased drilling activity."
The company's growth within the NGL market has ramped up and is anticipated to increase into next year. Spencer said: "We continue seeing the volume benefit from the six third-party natural gas processing plants connected to our system in 2016, and as expected, we connected three additional third-party plants to our system in the first-quarter 2017--one each in the Permian Basin, mid-continent and Rocky Mountain regions. We also remain on track to connect three additional plants this year, including two plants in the mid-continent and one in the Permian Basin. The total combined NGL production of these six new plants is expected to ramp up to approximately 30,000 barrels per day (BBL/d) by the end of 2017, and increase to approximately 40,000 BBL/d in 2018."
Another positive movement that ONEOK expects in the future is a drop in ethane rejection as demand increases. Ethane rejection on the company's NGL system fell to an average of more than 150,000 BBL/d in first-quarter 2017, compared to more than 175,000 BBL/d in first-quarter 2016. "We continue to expect ethane throughput to increase in the second half of the year, as demand increases from three new petrochemical plants coming online in the remainder of 2017 and capacity utilization increases at existing ethane export facilities," said Spencer.
ONEOK is keeping an eye toward future capital spending. "We are actively engaged in discussion with producers for long-term natural gas takeaway solutions in the Permian Basin and the STACK and SCOOP areas. In the Permian Basin, these projects could include an expansion of our Roadrunner Pipeline to provide more natural gas supply to Mexico or an expansion or extension of our ONEOK WesTex Pipeline system," said Spencer, adding there were also a number of viable expansion options in the STACK and SCOOP plays.
ONEOK's net income for first-quarter 2017 was $87.4 million, compared to $83.4 million in first-quarter 2016.
Among the top ONEOK projects being tracked by Industrial Info is the grassroot Roadrunner natural gas transmission loop in West Texas. A 205-mile, $330 million loop is being constructed on the line to transport up to 875,000 million standard cubic feet per day of natural gas from ONEOK's Coyanosa Waha Hub, which is southwest of Odessa, to a new border crossing connection near San Elizario, Texas, where it will connect with a pipeline in Chihuahua, Mexico. The project is expected to be completed in the third quarter of this year. For more information, see Industrial Info's project report.
Industrial Info also is tracking several maintenance projects at the company's natural gas processing plants. Among these is the planned major maintenance turnaround at the company's 125,000-BBL/d NGL Fractionation Plant MB-2 in Mont Belvieu, Texas. The 46-day turnaround is expected to take place in summer 2018 and has an estimated total investment value of $15 million. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
