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Released August 02, 2019 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--As natural gas and natural gas liquids (NGL) production increases in the U.S., ONEOK Incorporated (NYSE:OKE) (Tulsa, Oklahoma), like other midstream companies, is expanding its footprint in the pipeline, natural gas processing and fractionation sectors. Industrial Info is tracking more than $5.9 billion in active ONEOK projects.
Click on the image at right for a breakdown by industry of active ONEOK projects.
In ONEOK's recent second-quarter earnings conference call, Chief Operating Officer Kevin Burdick discussed some of the company's major projects across the U.S. ONEOK's 900-mile Elk Creek Pipeline will transport unfractionated NGLs from a terminal in eastern Montana to its Mid-Continent facilities in Bushton, Kansas. Burdick said, "We completed the southern section of Elk Creek Pipeline from the Powder River Basin to the Mid-Continent, and it is currently flowing more than 30,000 barrels per day (BBL/d) of NGLs." Burdick said the pipeline is freeing regional rail capacity, which can be used to accommodate increasing NGL production in the Williston Basin until Elk Creek is fully in service later this year. The pipeline is expected to reach 100,000 BBL/d in throughput in first-quarter 2020. The project has an estimated total investment value (TIV) of $1.4 billion. For more information, see Industrial Info's project reports on the Montana, Wyoming, Colorado and Kansas sections of the pipeline.
Burdick said that ONEOK had announced 600 million cubic feet per day of additional gas processing capacity in the Williston Basin that is expected to come online by early 2021. He said, "Our latest announcement was the 200 million-cubic-feet-per-day expansion of our Bear Creek plant in Dunn County, an area that has recently experienced some of the highest production increases in North Dakota, and has a decades-long runway of well inventory yet to be drilled." Construction on the addition of Train 2 at the facility is expected to kick off soon and be completed in first-quarter 2020. Optimized Process Designs LLC (Katy, Texas) is performing engineering, procurement and construction. For more information, see Industrial Info's project report.
Also in North Dakota, ONEOK is underway with construction of its grassroot Demicks Lake natural gas processing plant. A second processing train also is under construction. Burdick said, "Our Demicks Lake I plant remains on schedule to open full in the fourth quarter of 2019 in conjunction with the completion of the northern section of Elk Creek. Demicks Lake II is expected to be complete early in the first-quarter 2020." After completion of the two trains, the facility will have a processing capacity of 400 million cubic feet per day. For more information, see Industrial Info's project reports on Train 1 and Train 2.
Further south, ONEOK is underway with construction of the Arbuckle II NGL Pipeline, which will run from Oklahoma to its fractionation facilities in Mont Belvieu, Texas. The 530-mile pipeline will have an initial capacity of 400,000 BBL/d and is expected to be completed in first-quarter 2020. Burdick said the pipeline's contracted capacity now totals 375,000 BBL/d. The project has an estimated TIV of $1.36 billion. For more information, see Industrial Info's project reports on the Oklahoma and Texas portions of the pipeline.
At Mont Belvieu, ONEOK is adding additional fractionators, MB-4 and MB-5. The facility has a current fractionation capacity of 150,000 BBL/d. Burdick said MB-4 was planned to be completed in two phases. He said, "Phase 1 will provide approximately 75,000 BBL/d of capacity and is expected to be available in the fourth quarter of this year, earlier than originally planned. Phase 2 will consist of the remaining 50,000 BBL/d and is expected to be completed in the first quarter of 2020, as originally announced." Construction of MB-5 began earlier this year. The unit will add a further 125,000 BBL/d of capacity, bringing total plant capacity to 400,000 BBL/d. For more information, see Industrial Info's project reports on MB-4 and MB-5.
ONEOK reported second-quarter 2019 net income of $312 million, compared with $282.2 million in the year-prior quarter.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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.
Click on the image at right for a breakdown by industry of active ONEOK projects.In ONEOK's recent second-quarter earnings conference call, Chief Operating Officer Kevin Burdick discussed some of the company's major projects across the U.S. ONEOK's 900-mile Elk Creek Pipeline will transport unfractionated NGLs from a terminal in eastern Montana to its Mid-Continent facilities in Bushton, Kansas. Burdick said, "We completed the southern section of Elk Creek Pipeline from the Powder River Basin to the Mid-Continent, and it is currently flowing more than 30,000 barrels per day (BBL/d) of NGLs." Burdick said the pipeline is freeing regional rail capacity, which can be used to accommodate increasing NGL production in the Williston Basin until Elk Creek is fully in service later this year. The pipeline is expected to reach 100,000 BBL/d in throughput in first-quarter 2020. The project has an estimated total investment value (TIV) of $1.4 billion. For more information, see Industrial Info's project reports on the Montana, Wyoming, Colorado and Kansas sections of the pipeline.
Burdick said that ONEOK had announced 600 million cubic feet per day of additional gas processing capacity in the Williston Basin that is expected to come online by early 2021. He said, "Our latest announcement was the 200 million-cubic-feet-per-day expansion of our Bear Creek plant in Dunn County, an area that has recently experienced some of the highest production increases in North Dakota, and has a decades-long runway of well inventory yet to be drilled." Construction on the addition of Train 2 at the facility is expected to kick off soon and be completed in first-quarter 2020. Optimized Process Designs LLC (Katy, Texas) is performing engineering, procurement and construction. For more information, see Industrial Info's project report.
Also in North Dakota, ONEOK is underway with construction of its grassroot Demicks Lake natural gas processing plant. A second processing train also is under construction. Burdick said, "Our Demicks Lake I plant remains on schedule to open full in the fourth quarter of 2019 in conjunction with the completion of the northern section of Elk Creek. Demicks Lake II is expected to be complete early in the first-quarter 2020." After completion of the two trains, the facility will have a processing capacity of 400 million cubic feet per day. For more information, see Industrial Info's project reports on Train 1 and Train 2.
Further south, ONEOK is underway with construction of the Arbuckle II NGL Pipeline, which will run from Oklahoma to its fractionation facilities in Mont Belvieu, Texas. The 530-mile pipeline will have an initial capacity of 400,000 BBL/d and is expected to be completed in first-quarter 2020. Burdick said the pipeline's contracted capacity now totals 375,000 BBL/d. The project has an estimated TIV of $1.36 billion. For more information, see Industrial Info's project reports on the Oklahoma and Texas portions of the pipeline.
At Mont Belvieu, ONEOK is adding additional fractionators, MB-4 and MB-5. The facility has a current fractionation capacity of 150,000 BBL/d. Burdick said MB-4 was planned to be completed in two phases. He said, "Phase 1 will provide approximately 75,000 BBL/d of capacity and is expected to be available in the fourth quarter of this year, earlier than originally planned. Phase 2 will consist of the remaining 50,000 BBL/d and is expected to be completed in the first quarter of 2020, as originally announced." Construction of MB-5 began earlier this year. The unit will add a further 125,000 BBL/d of capacity, bringing total plant capacity to 400,000 BBL/d. For more information, see Industrial Info's project reports on MB-4 and MB-5.
ONEOK reported second-quarter 2019 net income of $312 million, compared with $282.2 million in the year-prior quarter.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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.
