The Name to Know in Natural Gas

BAKKEN NEWS & TRENDS
By The Bakken magazine staff | May 24, 2013

There is a new household name associated with the reduction of natural gas flaring in the Bakken: ONEOK. The Tulsa, Okla.-based natural gas processing and transportation company, has not only invested heavily in the play, it has completed three major projects to move or process associated gas produced during oil or gas retrieval. With more than 5,000 miles of natural gas gathering infrastructure and overall acreage dedications in the region of roughly 3.1 million acres, ONEOK Partners LP is the largest independent operator in the Williston Basin.

The company recently completed the Bakken NGL Pipeline, a 600-mile pipeline with the capacity to move 60,000 barrels per day of unfractionated natural gas liquids from ONEOK’s facilities and third-party facilities. The pipeline cost roughly $550 million and NGL’s transported from the Williston Basin eventually arrive at the company’s NGL fractionation and storage facility in central Kansas. The pipeline is the first NGL-capable transport infrastructure to move product to the Mid-Continent and the Texas Gulf Coast. By third quarter 2014, a $100 million investment announced in 2012 will increase the capacity of the pipeline from 60,000 to 135,000 bpd. According to the North Dakota Pipeline Authority, the state produced roughly 850 million cubic feet per day (MMcf/d) of associated gas for the month of February.

In western Williams County, the company has also started operating Stateline II, a 100 MMcf/d processing facility, the third of its kind to be completed by ONEOK in the Williston Basin since 2011. The company now has processing capacity of 390 MMcf/d. “The completion of Stateline II, along with our other two plants and associated infrastructure that are operational, will reduce the flaring of natural gas in the region,” according to Terry Spencer, president of ONEOK Partners. By 2015, the company will have invested between $1.7 billion to $1.9 billion in the Williston Basin.