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Researched by Industrial Info Resources (Sugar Land, Texas)--Pipeline operator ONEOK Incorporated (NYSE:OKE) (Tulsa, Oklahoma) announced this week that it had struck deals with investment firm Global Infrastructure Partners (GIP) (New York, New York) that will significantly expand ONEOK's position in the prolific Permian Basin and other locations. The acquisitions dovetail with existing ONEOK projects seeking to expand the company's position in Texas and elsewhere.
The agreement between ONEOK and GIP sees ONEOK buying GIP's stake in EnLink Midstream (NYSE:ENLC) (Dallas, Texas), which has assets in the Permian as well as Oklahoma, north Texas and the Gulf Coast, and GIP's equity interests in Medallion Midstream (Irving, Texas). In the EnLink deal, ONEOK will buy GIP's 43% stake in the company, for a total of about $3.3 billion in cash. In the second deal, ONEOK will buy GIP's equity interests in Medallion Midstream, a crude gathering and transportation system in the Permian's Midland Basin, for $2.6 billion in cash.
The deals will give ONEOK an additional 1.7 billion cubic feet per day (Bcf/d) of gas-processing capacity in the Permian and 1.6 million barrels per day (BBL/d) of crude oil gathering capacity there, as well as additional acquisitions in the other areas where EnLink operates. But ONEOK's eye is on the Permian: "We are particularly excited to meaningfully increase our company's presence in the Permian Basin, which is expected to continue driving the majority of U.S. oil and gas growth," ONEOK Chief Executive Officer Pierce Norton II said of the deal.
ONEOK said the transaction was expected to close in the fourth quarter of this year. Once it closes, ONEOK says it intends to pursue the acquisition of the remaining 57% of EnLink.
Industrial Info is tracking more than 130 EnLink plants, including compressor stations, pump stations and gas-processing facilities, the majority of which are in Texas. Subscribers to Industrial Info's Global Market Intelligence (GMI) Pipelines Plant Database can click here for the related plant profiles. Industrial Info also is tracking 16 pump stations, compressor stations and gas-processing plants belonging to Medallion. Subscribers can click here for a full listing.
ONEOK is busy with projects to expand its transportation and processing capacities for natural gas coming out of the Permian. ONEOK is considering constructing a 325-mile pipeline to carry unfractionated natural gas liquids (NGL) from the Permian to its gas-fractionation site in Mont Belvieu, near the Texas Gulf Coast. Construction potentially could kick off this year, putting the pipeline on track for completion in 2025, but the project has already seen delays to its originally proposed start date and could be delayed further if permitting obstacles arise or ONEOK simply changes its plans. Once completed, the 24-inch-diameter pipeline would carry up to 240,000 BBL/d of unfractionated NGLs from the Permian to Mont Belvieu and would be expandable to up to 400,000 BBL/d. Subscribers can learn more by viewing the project report.
And by the time the pipeline is complete, Mont Belvieu should have a new fractionator to process the NGLs. ONEOK started construction of its sixth fractionator, known as MB-6, at the Mont Belvieu site in the summer of 2023. The 125,000-BBL/d fractionator will boost ONEOK's total fractionation at Mont Belvieu to about 700,000 BBL/d. Rather than an ethane-propane mix, MB-6 will produce only purity ethane, demand for which is high along the Gulf Coast with its many olefins-production facilities. Engineering, procurement and construction contractor Burns & McDonnell (Kansas City, Missouri) is expected to complete MB-6 in the first quarter of next year. Subscribers to Industrial Info's Production Project Database can click here for more details on the project.
ONEOK also is considering a gas pipeline from the Waha Hub in the Permian that would carry natural gas across the Mexican border. The Saguaro Connector would run 155 miles to planned border-crossing facilities in Hudspeth County, Texas, transporting up to 2.8 Bcf/d in the 48-inch pipe. The project remains in the late planning stages, but could potentially begin next year, putting the pipeline on track to carry Permian-produce natural gas in 2026. Subscribers to Industrial Info's GMI Project Database can learn more by viewing the related project reports.
ONEOK's attention isn't necessarily laser-focused on the Permian only, and the company also is expanding its footprint elsewhere in the U.S., notably around its North Dakota holdings in the Bakken Shale. Recently begun in North Dakota is the capacity expansion of ONEOK's Bear Creek NGL pipeline. The project entails constructing two pump stations in McKenzie and Dunn counties. The McKenzie site will feature two 2,000-horsepower electric pump packages, while the Dunn site will have three. The expansion will ultimately deliver 80,000 BBL/d to ONEOK's Elk Creek Pipeline system for fractionation. Subscribers to Industrial Info's GMI Project Database can learn more by viewing the related project reports.
Subscribers to Industrial Info's GMI Database can click here to view reports for all of the projects discussed in this article and click here for the related plant profiles.
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) 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 over 200,000 current and future projects worth $17.8 trillion (USD).
The agreement between ONEOK and GIP sees ONEOK buying GIP's stake in EnLink Midstream (NYSE:ENLC) (Dallas, Texas), which has assets in the Permian as well as Oklahoma, north Texas and the Gulf Coast, and GIP's equity interests in Medallion Midstream (Irving, Texas). In the EnLink deal, ONEOK will buy GIP's 43% stake in the company, for a total of about $3.3 billion in cash. In the second deal, ONEOK will buy GIP's equity interests in Medallion Midstream, a crude gathering and transportation system in the Permian's Midland Basin, for $2.6 billion in cash.
The deals will give ONEOK an additional 1.7 billion cubic feet per day (Bcf/d) of gas-processing capacity in the Permian and 1.6 million barrels per day (BBL/d) of crude oil gathering capacity there, as well as additional acquisitions in the other areas where EnLink operates. But ONEOK's eye is on the Permian: "We are particularly excited to meaningfully increase our company's presence in the Permian Basin, which is expected to continue driving the majority of U.S. oil and gas growth," ONEOK Chief Executive Officer Pierce Norton II said of the deal.
ONEOK said the transaction was expected to close in the fourth quarter of this year. Once it closes, ONEOK says it intends to pursue the acquisition of the remaining 57% of EnLink.
Industrial Info is tracking more than 130 EnLink plants, including compressor stations, pump stations and gas-processing facilities, the majority of which are in Texas. Subscribers to Industrial Info's Global Market Intelligence (GMI) Pipelines Plant Database can click here for the related plant profiles. Industrial Info also is tracking 16 pump stations, compressor stations and gas-processing plants belonging to Medallion. Subscribers can click here for a full listing.
ONEOK is busy with projects to expand its transportation and processing capacities for natural gas coming out of the Permian. ONEOK is considering constructing a 325-mile pipeline to carry unfractionated natural gas liquids (NGL) from the Permian to its gas-fractionation site in Mont Belvieu, near the Texas Gulf Coast. Construction potentially could kick off this year, putting the pipeline on track for completion in 2025, but the project has already seen delays to its originally proposed start date and could be delayed further if permitting obstacles arise or ONEOK simply changes its plans. Once completed, the 24-inch-diameter pipeline would carry up to 240,000 BBL/d of unfractionated NGLs from the Permian to Mont Belvieu and would be expandable to up to 400,000 BBL/d. Subscribers can learn more by viewing the project report.
And by the time the pipeline is complete, Mont Belvieu should have a new fractionator to process the NGLs. ONEOK started construction of its sixth fractionator, known as MB-6, at the Mont Belvieu site in the summer of 2023. The 125,000-BBL/d fractionator will boost ONEOK's total fractionation at Mont Belvieu to about 700,000 BBL/d. Rather than an ethane-propane mix, MB-6 will produce only purity ethane, demand for which is high along the Gulf Coast with its many olefins-production facilities. Engineering, procurement and construction contractor Burns & McDonnell (Kansas City, Missouri) is expected to complete MB-6 in the first quarter of next year. Subscribers to Industrial Info's Production Project Database can click here for more details on the project.
ONEOK also is considering a gas pipeline from the Waha Hub in the Permian that would carry natural gas across the Mexican border. The Saguaro Connector would run 155 miles to planned border-crossing facilities in Hudspeth County, Texas, transporting up to 2.8 Bcf/d in the 48-inch pipe. The project remains in the late planning stages, but could potentially begin next year, putting the pipeline on track to carry Permian-produce natural gas in 2026. Subscribers to Industrial Info's GMI Project Database can learn more by viewing the related project reports.
ONEOK's attention isn't necessarily laser-focused on the Permian only, and the company also is expanding its footprint elsewhere in the U.S., notably around its North Dakota holdings in the Bakken Shale. Recently begun in North Dakota is the capacity expansion of ONEOK's Bear Creek NGL pipeline. The project entails constructing two pump stations in McKenzie and Dunn counties. The McKenzie site will feature two 2,000-horsepower electric pump packages, while the Dunn site will have three. The expansion will ultimately deliver 80,000 BBL/d to ONEOK's Elk Creek Pipeline system for fractionation. Subscribers to Industrial Info's GMI Project Database can learn more by viewing the related project reports.
Subscribers to Industrial Info's GMI Database can click here to view reports for all of the projects discussed in this article and click here for the related plant profiles.
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) 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 over 200,000 current and future projects worth $17.8 trillion (USD).
