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Released May 07, 2019 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Like other midstream companies, ONEOK Incorporated (NYSE:OKE) (Tulsa, Oklahoma) is benefitting from the sustained high production of fossil fuels from the U.S. In particular, ONEOK is underway with projects to increase its transportation and fractionation capacity for natural gas liquids (NGLs). Industrial Info is tracking projects valued at more than $4.4 billion involving ONEOK.
In the company's recent earnings conference call, ONEOK Chief Executive Officer Terry Spencer gave an update on some of ONEOK's growth projects. Spencer said, "After more than a year of talking about our capital growth projects, we are nearing completion on several of them. Over the coming months, these projects will add critical NGL takeaway, fractionation and natural gas processing capacity for our customers where they need it the most, providing ONEOK with substantial long-term fee-based earnings and cash flow growth." Spencer said the company's capital spending in 2019 may be above its previous guidance midpoint of $3.1 billion, as ONEOK might "be spending construction dollars in 2019 that were previously planned for 2020 and accelerating the in-service dates for some projects."
Among the projects discussed was the company's Elk Creek Pipeline, which will transport NGLs from eastern Montana to ONEOK's facilities in Bushton, Kansas. Spencer said, "As it looks today, we now expect the southern section of the Elk Creek Pipeline to be complete early in the third quarter of this year and the entire pipeline complete during the fourth quarter." The pipeline will run about 900 miles and carry 240,000 barrels per day (BBL/d) of NGLs (expandable to 400,000 BBL/d). Construction on the $1.4 billion project began earlier this year, with various companies providing general contracting work for different segments. For more information, see Industrial Info's project reports on the Montana, Wyoming, Colorado and Kansas portions of the pipeline.
Spencer mentioned two of the company's other large projects: "The Arbuckle II Pipeline and MB-4 fractionator are expected to be complete in the first quarter of 2020." ONEOK's Arbuckle II Pipeline will transport up to 400,000 BBL/d of NGLs 530 miles from its gathering system in Oklahoma to its fractionation and storage facilities in Mont Belvieu, Texas. Construction on the $1.3 billion project began earlier this year, with Venables Construction (Amarillo, Texas) and WHC Incorporated (Broussard, Louisiana) as the general contractors. For more information, see Industrial Info's project reports on the Oklahoma and Texas portions of the pipeline.
Construction on ONEOK's MB-4 fractionator in Mont Belvieu began late last year. The unit will add 125,000 BBL/d of fractionation capacity, bringing the plant's total capacity to 275,000 BBL/d. Burns & McDonnell Incorporated (Kansas City, Missouri) is providing engineering, procurement and construction (EPC) on the project. ONEOK also is underway with construction of a fifth fractionator (MB-5) at Mont Belvieu, which will add a further 125,000 BBL/d of fractionation capacity. The facility is expected to be completed in the second half of 2020. For more information, see Industrial Info's project reports on MB-4 and MB-5.
ONEOK is underway with construction on a grassroot natural gas processing plant in North Dakota. The facility will process up 200 million cubic feet per day of natural gas from the Bakken Shale. Construction began late last year and is expected to take about a year to complete. Optimized Process Designs LLC (Katy, Texas) is providing EPC on the project, which has an estimated total investment value of $200 million. For more information, see Industrial Info's project report.
As ONEOK approaches completion of these projects, the company appears to have its sights set on other NGL-based projects. Spencer said, "Our commercial team continues to evaluate a potential NGL export facility on the Gulf Coast. As this opportunity continues to evolve and develop, we will provide further details as appropriate." Industrial Info will remain apprised of any further developments.
ONEOK reported a 27% increase in net income for first-quarter 2019, rising to $337 million from $266 million in the prior year.
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.
In the company's recent earnings conference call, ONEOK Chief Executive Officer Terry Spencer gave an update on some of ONEOK's growth projects. Spencer said, "After more than a year of talking about our capital growth projects, we are nearing completion on several of them. Over the coming months, these projects will add critical NGL takeaway, fractionation and natural gas processing capacity for our customers where they need it the most, providing ONEOK with substantial long-term fee-based earnings and cash flow growth." Spencer said the company's capital spending in 2019 may be above its previous guidance midpoint of $3.1 billion, as ONEOK might "be spending construction dollars in 2019 that were previously planned for 2020 and accelerating the in-service dates for some projects."
Among the projects discussed was the company's Elk Creek Pipeline, which will transport NGLs from eastern Montana to ONEOK's facilities in Bushton, Kansas. Spencer said, "As it looks today, we now expect the southern section of the Elk Creek Pipeline to be complete early in the third quarter of this year and the entire pipeline complete during the fourth quarter." The pipeline will run about 900 miles and carry 240,000 barrels per day (BBL/d) of NGLs (expandable to 400,000 BBL/d). Construction on the $1.4 billion project began earlier this year, with various companies providing general contracting work for different segments. For more information, see Industrial Info's project reports on the Montana, Wyoming, Colorado and Kansas portions of the pipeline.
Spencer mentioned two of the company's other large projects: "The Arbuckle II Pipeline and MB-4 fractionator are expected to be complete in the first quarter of 2020." ONEOK's Arbuckle II Pipeline will transport up to 400,000 BBL/d of NGLs 530 miles from its gathering system in Oklahoma to its fractionation and storage facilities in Mont Belvieu, Texas. Construction on the $1.3 billion project began earlier this year, with Venables Construction (Amarillo, Texas) and WHC Incorporated (Broussard, Louisiana) as the general contractors. For more information, see Industrial Info's project reports on the Oklahoma and Texas portions of the pipeline.
Construction on ONEOK's MB-4 fractionator in Mont Belvieu began late last year. The unit will add 125,000 BBL/d of fractionation capacity, bringing the plant's total capacity to 275,000 BBL/d. Burns & McDonnell Incorporated (Kansas City, Missouri) is providing engineering, procurement and construction (EPC) on the project. ONEOK also is underway with construction of a fifth fractionator (MB-5) at Mont Belvieu, which will add a further 125,000 BBL/d of fractionation capacity. The facility is expected to be completed in the second half of 2020. For more information, see Industrial Info's project reports on MB-4 and MB-5.
ONEOK is underway with construction on a grassroot natural gas processing plant in North Dakota. The facility will process up 200 million cubic feet per day of natural gas from the Bakken Shale. Construction began late last year and is expected to take about a year to complete. Optimized Process Designs LLC (Katy, Texas) is providing EPC on the project, which has an estimated total investment value of $200 million. For more information, see Industrial Info's project report.
As ONEOK approaches completion of these projects, the company appears to have its sights set on other NGL-based projects. Spencer said, "Our commercial team continues to evaluate a potential NGL export facility on the Gulf Coast. As this opportunity continues to evolve and develop, we will provide further details as appropriate." Industrial Info will remain apprised of any further developments.
ONEOK reported a 27% increase in net income for first-quarter 2019, rising to $337 million from $266 million in the prior year.
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.
