ONEOK processing plant operational

TULSA, Okla. ONEOK Partners, L.P. announced Tuesday that its Garden Creek II plant, a 100-million cubic feet per day natural gas processing facility in eastern McKenzie County, is now operational.

The new plant is part of the partnership’s previously announced $7 billion to $7.5 billion capital-growth program through 2016.

“ONEOK Partners’ Williston Basin natural gas processing capacity now exceeds 500 MMcf/d five times more than our processing capacity in the region was in 2010 and we expect that number to grow to more than 600 MMcf/d during the fourth quarter of this year, when the Garden Creek III plant is completed. Increased natural gas processing capacity also will lead to a reduction of natural gas flaring in North Dakota,” said Terry Spencer, president and chief executive officer of ONEOK Partners.

The projects

The partnership’s Williston Basin natural gas processing capacity is expected to increase to approximately 1.1 billion cubic feet per day by the third quarter 2016 following the completion of additional natural gas infrastructure in the region, including:

The Garden Creek III plant, a 100-MMcf/d natural gas processing facility in the Williston Basin in North Dakota, which is expected to be completed in the fourth quarter 2014; and expansions and upgrades to existing natural gas gathering and compression infrastructure.

The Lonesome Creek plant, a 200-MMcf/d natural gas processing facility west of Watford City, which is expected to be completed in the fourth quarter 2015; and expansions and upgrades to existing natural gas gathering and compression infrastructure.

The Demicks Lake plant, a 200-MMcf/d natural gas processing facility in the Williston Basin in North Dakota, which is expected to be completed in the third quarter 2016; and expansions and upgrades to the existing gathering and compression infrastructure.

The construction of additional natural gas compression to take advantage of additional natural gas processing capacity as a result of better than expected plant performance at the partnership’s existing and planned Garden Creek and Stateline natural gas processing plants in the Williston Basin by a total of 100 MMcf/d, which is expected to be completed in the fourth quarter 2015.

“Pending board approval, we expect to announce additional Williston Basin natural gas processing capacity by the end of this year,” Spencer said.

ONEOK Partners is the largest independent operator of natural gas gathering and processing facilities in the Williston Basin, with a natural gas gathering system of more than 6,500 miles and more than 3 million acres where production is dedicated to its systems.

Total investments

The partnership has announced total investments of approximately $7 billion and $7.5 billion through 2016 for acquisitions and infrastructure growth projects related to natural gas gathering and processing and natural gas liquids, which includes the projects described above.

These investments consist of approximately $3.8 billion to $4.3 billion for natural gas gathering and processing projects, and approximately $3.2 billion for natural gas liquids projects. Nearly $4 billion is for growth projects related to resource development in the Williston Basin in North Dakota.