ONEOK Announces Plans For Additional Investment -- $300 Million -- North Dakota, USA

Late this afternoon, January 20, 2011, ONEOK announced plans to invest another $300 million in natural gas gathering and processing in western North Dakota. A big thank you to a reader for alerting me to this.

Link here.

New projects announced today:

• Stateline II -- a natural gas processing facility in western Williams County; in service by 1H13; $150 million
• Expansion of existing gathering and compression infrastructure: $100 million
• New well connections to Stateline II between now and end of 2014: $45 million

ONEOK calculates there are 1.5 million acres dedicated to their natural gas facilites

Other ONEOK Bakken projects:

• Previously announced projects: Garden Creek and natural gas processing plants
• Existing project: Grasslands natural gas processing plant
• Bottom line: ONEOK's natural gas processing capacity in western North Dakota: 400 million cubic feet/day, nearly quadrupling ONEOK's current processing capacity in the Williston Basin.

Stateline II will be constructed adjacent to Stateline I (expected to be in service in 3Q12.
Garden Creek plant should be in service by the end of this year (2011)

When all this is completed, the natural gas liquids produced from the plants will be delivered to ONEOK's previously announced Bakken NGL Pipeline, scheduled for completion about the same time as completion of the Stateline II plant.

This is a summary of the previously announced Bakken projects (earlier link here):

• Construction of the Garden Creek plant and the Stateline I plant, each a 100 MMcf/d natural gas processing facility, in the Bakken Shale in the Williston Basin in North Dakota, and related infrastructure;
• Construction of a 525- to 615-mile NGL pipeline, the Bakken Pipeline, to transport unfractionated NGLs produced from the Bakken Shale in the Williston Basin to the Overland Pass Pipeline, a 760-mile NGL pipeline extending from southwestern Wyoming to Conway, Kansas; update here; $500 million project
• Related capacity expansions for ONEOK Partners' 50-percent interest in the Overland Pass Pipeline to transport the additional unfractionated NGL volumes from the new Bakken Pipeline;