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Thursday, July 25, 2019

ONEOK Announces Additional Infrastructure -- July 25, 2019

If I can find the post from sometime earlier this week suggesting that we were about to see some announcements along this line, I will post the link.

Until then, a huge "thank you" to a reader for sending me this article. I had not seen it.

From a press release, ONEOK announces plans to expand natural gas and NGL infrastructure. Data points:
  • North Dakota / Bakken / Bear Creek:
    • a 200 million cfpd expansion of the Bear Creek natural gas processing facility
    • Dunn County, ND
    • $405 million project
    • to be completed in 1Q21
  • Mid-Continent NGL fractionation expansions totaling approx 65,000 bpd and additional NGL infrastructure capacity between the Elk Creek and Arbuckle II
    • $150 million project
    • 15,000 bpd expansion to be completed in 3Q20
    • 50,000 bpd expansion to be completed 1Q21
    • why? In expectation of accelerating volume growth from the Williston and Powder River basins, additional infrastructure will be constructed to increase connectivity between the Elk Creek and Arbuckle II pipelines.
More on the Bear Creek expansion:
ONEOK's Williston Basin natural gas processing capacity will increase to more than 1.6 billion cubic feet per day following the completion of the Bear Creek expansion. The expansion is expected to produce approximately 25,000 bpd of NGLs in ethane rejection, resulting in 225,000 bpd of raw feed contracted since the announcement of the Elk Creek Pipeline.
More at the link including expansion plans for the Permian.

Natural gas processing plants in North Dakota are tracked here.

At that link, there is a "Bear Creek II," 200 million cfpd, 2021 -- that may, in fact, represent this newest announcement. ONEOK calls is an expansion; ND regulators list it as a new project, co-located at existing Bear Creek I, it appears.

Call me naive, but this would suggest to me that ONEOK does not agree that the North Dakota Bakken is reaching peak production. 

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Natural Gas Records

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