ONEOK Partners announces new N.D. plant

BISMARCK — ONEOK Partners  is planning to build a new 100 million cubic feet per day natural gas processing facility in eastern McKenzie County, the company announced this week.

The Garden Creek II plant and related infrastructure, including expansions and upgrades to existing natural gas gathering and compression, is expected to cost $310 million to $345 million, according to a news release on the company’s website.

The plant is expected to be in service during summer 2014. It will be built adjacent to the partnership’s existing Garden Creek natural gas processing plant, completed in December 2011.

The new plans increase the company’s Bakken-related investments to $3.6 billion to $4.2 billion for natural gas, natural gas liquids and crude oil related infrastructure projects between now and 2015, said Pierce Norton, executive vice president and chief operating officer.

“These investments will enable us to continue meeting the growing needs of Bakken producers and keep pace with increased drilling activities,” Norton said in a statement.

The partnership will also invest approximately $100 million to install additional pump stations on the Bakken Natural Gas Liquids Pipeline to increase its capacity from 60,000 barrels per day to 135,000 barrels per day.

The 525- to 615-mile pipeline will transport natural gas liquids from the Bakken Shale to another pipeline that extends from Wyoming to Kansas, a news release from the governor’s office said. The pipeline is expected to be operational during the first half of next year.

ONEOK continues to be a strong partner in expanding North Dakota’s energy industry, especially in the area of natural gas gathering and processing, Gov. Jack Dalrymple said.

“Because of their significant investments in our state, we are able to further reduce flaring at oil well sites, decrease traffic congestion and impacts to our roads, and create new markets for our resources,” Dalrymple said in a statement. “The Garden Creek II plant will significantly increase North Dakota’s capability to process and export natural gas products.”

Three years ago, North Dakota produced 243 million cubic feet of natural gas per day, according to the governor’s office. Today, the state produces more than 650 million cubic feet of natural gas daily.

ONEOK’s Stateline I and Stateline II natural gas processing plants in western North Dakota are expected to be in service by fall and the first half of 2013, respectively, the company said.

When completed, the combined natural gas processing capabilities of all of ONEOK’s North Dakota plants will be 490 million cubic feet per day.

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