ONEOK to Pursue 1.7 Bcf/d of Natural Gas Pipeline Expansions in Permian Basin, Oklahoma

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Tulsa-based ONEOK Inc. has plans expand its natural gas pipeline infrastructure in the Permian Basin and Oklahoma. The company announced June 27 that its proposed projects could increase natural gas takeaway capacity by up to a total of 1.7 billion cubic feet per day (Bcf/d) in two of the most active production areas in the United States.

The projects include:

  • A 150 million cubic feet per day (MMcf/d) expansion of ONEOK’s WesTex Transmission system from the Permian Basin to interstate pipeline delivery points in the Texas Panhandle. Additional interest is being solicited in a follow-up open season that could potentially increase the expansion to 450 MMcf/d.
  • A 150 MMcf/d eastbound expansion of the ONEOK Gas Transportation system from two natural gas processing plants in the STACK and SCOOP areas to an eastern Oklahoma interstate pipeline delivery point.
  • A 100 MMcf/d westbound expansion of ONEOK Gas Transportation from the STACK area to multiple interstate pipeline delivery points in western Oklahoma. Additional interest is being solicited in a follow-up open season that could potentially increase the expansion to 300 MMcf/d.
  • A project to make Roadrunner Gas Transmission (Roadrunner) bidirectional. The project is expected to result in approximately 750 MMcf/d of eastbound transportation capacity from the Delaware Basin to the Waha area. Interest in the new eastbound capacity is being solicited in a concurrent open season.

“These capital-efficient expansions, primarily through the addition of compression facilities, will quickly create critical takeaway capacity and offer additional optionality for natural gas producers and processors in the Permian Basin and Oklahoma,” said president and CEO Terry K. Spencer. “We also continue active discussions with shippers in these areas regarding additional natural gas takeaway solutions that ONEOK could provide.”

RELATED: ONEOK Partners Expands Permian Basin Capacity to Serve Mexico

The projects are backed by multiple firm transportation commitments. Total annual average adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) from these projects when completed could be as high as $40 million with successful open seasons.

The westbound expansion of ONEOK Gas Transportation is expected to be complete in the fourth quarter 2018. The WesTex Transmission expansion, the eastbound expansion of ONEOK Gas Transportation and the Roadrunner bidirectional project are expected to be complete in the first quarter 2019.

ONEOK WesTex Transmission is an intrastate natural gas pipeline system operating within Texas, consisting of approximately 2,200 miles of pipeline.

ONEOK Gas Transportation is an intrastate natural gas pipeline system in Oklahoma, consisting of approximately 2,470 miles of transmission pipelines. In May 2018, the company completed a 100 MMcf/d westbound expansion of the system to serve growth in the STACK area.

Roadrunner, a 50-50 joint venture between ONEOK and Fermaca Infrastructure B.V. (Fermaca), is a Texas intrastate pipeline system transporting natural gas from the Waha natural gas market hub to El Paso markets and to the U.S. and Mexico border.

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