Oneok’s 7th NG Plant to be Largest in Williston Basin

By The Bakken Staff | December 26, 2013

Production in the Williston Basin shows no signs of leveling off. Neither does the natural gas investment plans of Oneok Partners LP. The Oklahoma-based natural gas company has announced plans to build its sixth natural gas plant in the Williston Basin since 2010. The plant, a 200-million-cubic-feet-per-day processing facility in McKenzie County, could be complete by the end of 2015.  The cost to build the Lonesome Creek facility will range from $320 million to $390 million, and once complete, it will be Oneok’s largest in North Dakota. 

The new plant does have consequences for Oneok. The added capacity means the company will need to expand its Bakken NGL Pipeline. Current capacity of the pipeline is roughly 135,000 barrels per day, but after a $100 million investment, the pipeline will feature 160,000 bpd capacity. 

Earlier this year, Oneok announced that by 2015, the company will have invested up to $1.9 billion in natural gas processing infrastructure in the region. In total, Oneok has created a gas-gathering system of more than 5,000 miles. 

The Lonesome Creek facility is the company’s seventh natural gas-inspired build-out project in the region, and, according to Oneok, it might not be the last. A backlog of unannounced growth projects, potentially totaling $2 billion to $3 billion, still exists. The projects are currently being evaluated, and, “additional projects included in this backlog will be announced when sufficient supply commitments are completed.”