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Plant(s): View 3 related plants in PECWeb
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Researched by Industrial Info Resources (Sugar Land, Texas)--Pipeline operator ONEOK Incorporated (NYSE:OKE) (Tulsa, Oklahoma) announced that it has agreed to sell three interstate pipeline systems to natural gas pipeline company DT Midstream Incorporated (NYSE:DTM) (Detroit, Michigan). The $1.2 billion cash transaction is expected to close this quarter. The deal is coupled with several projects enhancing the midstream capabilities of both companies.
The three interstate pipelines that are part of the sale include:
The transaction is only one piece in ONEOK's arsenal to enhance its assets. The company is considering or underway with more than $4 billion in active projects. Many of the company's projects are geared not toward new pipelines but toward midstream processing assets such as natural gas processing plants and natural gas liquids (NGL) fractionators. One of the company's largest projects currently under construction is an NGL fractionator at its complex in Mont Belvieu, Texas. Engineering, procurement and construction contractor Burns & McDonnell (Kansas City, Missouri) began constructing the fractionator, known as MB-6, in 2023. The 125,000-barrel-per-day (BBL/d) unit will bring the site's total fractionation capacity to 525,000 BBL/d. Subscribers to Industrial Info's Global Market Intelligence (GMI) Production Project Database can learn more by viewing the project report.
ONEOK is considering constructing an NGL pipeline from Midland County, Texas, to Mont Belvieu to move unfractionated NGLs from the point of production to fractionation. Should the pipeline get the green light, it would span 325 miles between the two locations, carrying up to 240,000 BBL/d (expandable to 400,000 BBL/d). The line will include 16-inch- and 24-inch-diameter pipe and could possibly be completed by the second half of 2026. Subscribers can learn more by viewing the project report.
Other active ONEOK projects include rebuilding a natural gas processing and fractionation plant in Medford, Oklahoma, that experienced an explosion and fire in July 2022. Work is expected to begin soon at the site, putting it on track to again provide 210 million cubic feet per day of gas processing and 200,000 BBL/d of NGL fractionation. Work on the complex is expected to be completed in early 2027. Subscribers can click here to learn more about the project.
With not nearly as many planned projects as ONEOK, DT Midstream also is improving its infrastructure, primarily through the Phase III construction of the Louisiana Energy Access Pipeline (LEAP) in Louisiana. Construction kicked off a few months ago and will include laying 43 miles of 36-inch-diameter pipe to expand transmission of natural gas from the Haynesville Shale to 1.3 billion cubic feet per day between Desoto Parish and Natchitoches. The project is expected to be completed next summer. Subscribers can click here to learn more.
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 three interstate pipelines that are part of the sale include:
- Guardian Pipeline - This natural gas pipeline interconnects with several pipelines at a hub in Joliet, Illinois, and also includes distribution and electric generation companies in Wisconsin.
- Midwestern Gas Transmission - This bidirectional pipeline system has a major interconnect near Portland, Tennessee, multiple interstate pipelines to the Marcellus and Utica shales, and multiple connections at the Joliet hub.
- Viking Gas Transmission - This bidirectional system interconnects with a major pipeline at the U.S. border near Emerson, Manitoba, near the convergence of North Dakota, Minnesota and Canada.
The transaction is only one piece in ONEOK's arsenal to enhance its assets. The company is considering or underway with more than $4 billion in active projects. Many of the company's projects are geared not toward new pipelines but toward midstream processing assets such as natural gas processing plants and natural gas liquids (NGL) fractionators. One of the company's largest projects currently under construction is an NGL fractionator at its complex in Mont Belvieu, Texas. Engineering, procurement and construction contractor Burns & McDonnell (Kansas City, Missouri) began constructing the fractionator, known as MB-6, in 2023. The 125,000-barrel-per-day (BBL/d) unit will bring the site's total fractionation capacity to 525,000 BBL/d. Subscribers to Industrial Info's Global Market Intelligence (GMI) Production Project Database can learn more by viewing the project report.
ONEOK is considering constructing an NGL pipeline from Midland County, Texas, to Mont Belvieu to move unfractionated NGLs from the point of production to fractionation. Should the pipeline get the green light, it would span 325 miles between the two locations, carrying up to 240,000 BBL/d (expandable to 400,000 BBL/d). The line will include 16-inch- and 24-inch-diameter pipe and could possibly be completed by the second half of 2026. Subscribers can learn more by viewing the project report.
Other active ONEOK projects include rebuilding a natural gas processing and fractionation plant in Medford, Oklahoma, that experienced an explosion and fire in July 2022. Work is expected to begin soon at the site, putting it on track to again provide 210 million cubic feet per day of gas processing and 200,000 BBL/d of NGL fractionation. Work on the complex is expected to be completed in early 2027. Subscribers can click here to learn more about the project.
With not nearly as many planned projects as ONEOK, DT Midstream also is improving its infrastructure, primarily through the Phase III construction of the Louisiana Energy Access Pipeline (LEAP) in Louisiana. Construction kicked off a few months ago and will include laying 43 miles of 36-inch-diameter pipe to expand transmission of natural gas from the Haynesville Shale to 1.3 billion cubic feet per day between Desoto Parish and Natchitoches. The project is expected to be completed next summer. Subscribers can click here to learn more.
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).
