ONEOK to Expand LPG System, Provide More Permian Takeaway

ONEOK Inc. (Tulsa) on Sept. 10, 2018 said it plans to invest about $295 million to expand its West Texas LPG Ltd. partnership, otherwise known as West Texas LPG, whose pipeline system provides natural gas liquids takeaway capacity to Permian Basin producers.

The expansion project, which is expected to be completed in the first quarter of 2020, is supported by long-term, dedicated NGL production from six third-party natural gas processing plants in the Permian Basin that are expected to produce up to 60,000 bbld of NGLs. ONEOK continues discussions with producers and processors in the region for additional volume commitments.

The expansion includes the construction of four new pump stations, two pump station upgrades, and pipeline looping that will increase West Texas LPG mainline capacity by 80,000 bbld. Additional infrastructure to connect West Texas LPG with ONEOK’s Arbuckle II Pipeline will also be built.

“This second expansion of the West Texas LPG pipeline system will serve continued growth in the Permian Basin and positions ONEOK for additional future expansion opportunities in the Permian,” said Terry K. Spencer, ONEOK president and CEO.

The company’s 110,000-bbld pipeline lateral extension of the West Texas LPG system into the Delaware Basin and expansion of the existing mainline system is currently under construction and is expected to be in service this month.

The West Texas LPG pipeline consists of about 2600 miles of NGL line in Texas and New Mexico. The system provides NGL transportation services to the Mont Belvieu market center from nearly 40 third-party natural gas processing plants located in the Permian Basin. The basin, in southeastern New Mexico and western Texas, is the largest crude oil- and natural gas-producing basin in the U.S.

(SOURCE: The Weekly Propane Newsletter, October 1, 2018. Click Subscritptions Tab above to subscribe.)