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Released May 02, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Pipeline operator ONEOK Incorporated (NYSE:OKE) (Tulsa, Oklahoma) endured higher operating costs during the first quarter, but recent acquisitions in the Permian Basin are keeping its bottom line strong. Industrial Info is tracking more than $3.5 billion worth of active and planned projects from ONEOK, more than 60% of which is attributed to grassroot projects.
Click on the image at right for a graph detailing ONEOK's active and proposed projects, by project type.
The Permian has proven to be fertile ground for oil and gas transmission companies, which have spent the past few years racing to meet seemingly endless demand for takeaway capacity. ONEOK recently started work on the $250 million Saguaro Connector Pipeline in Texas, which is designed to carry up to 2.8 billion cubic feet per day of natural gas from the Waha Hub in Pecos County to facilities in Hudspeth County, some of which will send gas across the border to Mexico. The line will be supported by a $70 million compressor station in Coyanosa and a $5 million compressor station near Van Horn.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database can read detailed project reports on the Saguaro Connector Pipeline and its stations in Coyanosa and Van Horn.
ONEOK's projects nearing construction in the Permian include a $125 million segment of a refined products pipeline from Houston to El Paso, designed to run 30 miles from Odessa to Crane. The new segment will allow the full pipeline to carry an additional 30,000 barrels per day (BBL/d), bringing its total capacity to 100,000 BBL/d. It previously had been developed by Magellan Midstream Partners, which ONEOK acquired in September 2023. Subscribers can learn more from a detailed project report.
Last year, ONEOK acquired Global Infrastructure Partners' (GIP) (New York, New York) stakes in EnLink and Medallion, both of which boast substantial activity in the Permian. The deal was part of a broader effort by ONEOK to shift its focus toward its top-performing holdings, which also influenced its sale of three interstate natural gas pipelines to DT Midstream Incorporated (NYSE:DTM) (Detroit, Michigan) earlier this year. For more information, see August 30, 2024, article - ONEOK's $5.9 Billion of Acquisitions Expands Permian Position, and January 02, 2025, article - ONEOK Closes Sale of Three Natural Gas Pipelines to DT Midstream.
"First-quarter 2025 Midland [Permian] crude gathered volumes were up more than 20% year-over-year, which includes both the EnLink and Medallion systems," said Sheridan Swords, the chief commercial officer of ONEOK, in an earnings-related conference call. "Through recent acquisitions [on the natural gas side], we've extended our gathering and processing assets into the strategic and growing Permian Basin and added assets in the Mid-Continent [region]. We've added 1.7 billion cubic feet per day of processing capacity in the Permian, and more than doubled our processing capacity in the Mid-Continent."
ONEOK's Mid-Continent projects include several midstream processing assets, such as natural gas-processing plants and natural gas liquids (NGL) fractionators. The company is at work on a $385 million rebuild of an NGL processing complex in Medford, Oklahoma, which can handle up to 210 million standard cubic feet per day of natural gas and 200,000 BBL/d of an ethane-propane mix. The facility was closed on July 2022 after an explosion and fire at a fractionator that processed ethane. The rebuild is expected to run through 2027. Subscribers can learn more from a detailed project report.
"We've been engaged in active negotiations across our system related to power demand for data centers in Oklahoma and Texas, as well as LNG ammonia and in industrial demand along the Mississippi River industrial corridor," Swords said in the earnings call. "Our Oklahoma and natural gas storage expansion project was recently completed and will be fully in service next month, adding an additional 4 billion cubic feet of working storage capacity, which is 80% committed with third-party contracts."
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of detailed project reports for active and proposed projects from ONEOK.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing ONEOK's active and proposed projects, by project type.The Permian has proven to be fertile ground for oil and gas transmission companies, which have spent the past few years racing to meet seemingly endless demand for takeaway capacity. ONEOK recently started work on the $250 million Saguaro Connector Pipeline in Texas, which is designed to carry up to 2.8 billion cubic feet per day of natural gas from the Waha Hub in Pecos County to facilities in Hudspeth County, some of which will send gas across the border to Mexico. The line will be supported by a $70 million compressor station in Coyanosa and a $5 million compressor station near Van Horn.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database can read detailed project reports on the Saguaro Connector Pipeline and its stations in Coyanosa and Van Horn.
ONEOK's projects nearing construction in the Permian include a $125 million segment of a refined products pipeline from Houston to El Paso, designed to run 30 miles from Odessa to Crane. The new segment will allow the full pipeline to carry an additional 30,000 barrels per day (BBL/d), bringing its total capacity to 100,000 BBL/d. It previously had been developed by Magellan Midstream Partners, which ONEOK acquired in September 2023. Subscribers can learn more from a detailed project report.
Last year, ONEOK acquired Global Infrastructure Partners' (GIP) (New York, New York) stakes in EnLink and Medallion, both of which boast substantial activity in the Permian. The deal was part of a broader effort by ONEOK to shift its focus toward its top-performing holdings, which also influenced its sale of three interstate natural gas pipelines to DT Midstream Incorporated (NYSE:DTM) (Detroit, Michigan) earlier this year. For more information, see August 30, 2024, article - ONEOK's $5.9 Billion of Acquisitions Expands Permian Position, and January 02, 2025, article - ONEOK Closes Sale of Three Natural Gas Pipelines to DT Midstream.
"First-quarter 2025 Midland [Permian] crude gathered volumes were up more than 20% year-over-year, which includes both the EnLink and Medallion systems," said Sheridan Swords, the chief commercial officer of ONEOK, in an earnings-related conference call. "Through recent acquisitions [on the natural gas side], we've extended our gathering and processing assets into the strategic and growing Permian Basin and added assets in the Mid-Continent [region]. We've added 1.7 billion cubic feet per day of processing capacity in the Permian, and more than doubled our processing capacity in the Mid-Continent."
ONEOK's Mid-Continent projects include several midstream processing assets, such as natural gas-processing plants and natural gas liquids (NGL) fractionators. The company is at work on a $385 million rebuild of an NGL processing complex in Medford, Oklahoma, which can handle up to 210 million standard cubic feet per day of natural gas and 200,000 BBL/d of an ethane-propane mix. The facility was closed on July 2022 after an explosion and fire at a fractionator that processed ethane. The rebuild is expected to run through 2027. Subscribers can learn more from a detailed project report.
"We've been engaged in active negotiations across our system related to power demand for data centers in Oklahoma and Texas, as well as LNG ammonia and in industrial demand along the Mississippi River industrial corridor," Swords said in the earnings call. "Our Oklahoma and natural gas storage expansion project was recently completed and will be fully in service next month, adding an additional 4 billion cubic feet of working storage capacity, which is 80% committed with third-party contracts."
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of detailed project reports for active and proposed projects from ONEOK.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
