Midstreamer Oneok last week announced $700 million in plans to expand its natural gas and natural gas liquids infrastructure between now and 2021, including:

* A 200 million cubic feet per day (Mmcf/d) expansion of the Bear Creek natural gas processing facility and related infrastructure in the Williston Basin
* Mid-Continent Ngl fractionation facility expansions totaling roughly 65,000 barrels per day, and additional Ngl infrastructure to increase capacity between the Elk Creek and Arbuckle II pipelines
* A 40,000 Bpd additional expansion of the West Texas LPG pipeline in the Permian Basin.

No equity issuances needed

The projects are expected to be financed with cash generated from operations and short- and long-term borrowings. Oneok sees no need for equity issuances, Kallanish Energy reports.

“These low-cost, capital-efficient expansions with attractive returns continue to demonstrate Oneok’s ability to incrementally grow with our customers to meet their needs,” said Terry K. Spencer, Oneok president and CEO.

“The Bear Creek plant expansion in North Dakota will provide needed processing capacity for producers actively developing the high-growth area of Dunn County while also helping to address natural gas flaring in the state,” added Spencer.

“Continuing to expand our West Texas LPG pipeline system underscores Oneok’s Permian Basin strategy to provide needed Ngl transportation capacity to producers in the highly productive Delaware and Midland basins.”

Supported by acreage dedications

The Bear Creek expansion and related infrastructure in Dunn County, North Dakota, are expected to cost a total of roughly $405 million and be completed in the first quarter of 2021. The expansion is supported by acreage dedications with primarily fee-based contracts.

Oneok’s Williston Basin natural gas processing capacity will increase to more than 1.6 billion cubic feet per day (Bcf/d) following the completion of the Bear Creek expansion.

The expansion is expected to produce roughly 25,000 Bpd of Ngls in ethane rejection, resulting in 225,000 Bbpd of raw feed contracted since the announcement of the Elk Creek Pipeline.

Long-term Ngl production-supported

The West Texas LPG pipeline expansion is expected to cost roughly $145 million and be completed in the first quarter of 2021. The expansion is supported by long-term dedicated Ngl production from third-party natural gas processing plants in the Permian Basin that are expected to produce up to 45,000 Bpd of Ngls.

The expansions to Oneok’s Mid-Continent Ngl fractionation facilities are expected to cost approximately $150 million, with 15,000 Bpd expected to be completed in the third quarter of 2020, and 50,000 Bpd expected to be completed in the first quarter of 2021.

This post appeared first on Kallanish Energy News.