ONEOK Partners to invest in Williston Basin projects

ONEOK Partners LP

ONEOK Partners LP (NYSE: OKS) plans to invest $650 million to $780 million in Williston Basin growth projects between now and the second quarter of 2016.

These projects include building a new natural gas processing facility (the Lonesome Creek plant) with a capacity of 200 million cubic feet per day (MMcf/d), along with related infrastructure in McKenzie County, North Dakota, in the Bakken shale play in the Williston Basin. ONEOK Partners will also complete a second expansion of the Bakken NGL Pipeline, which will increase the pipeline's capacity to 160,000 barrels per day (bpd) from 135,000 bpd.

The Lonesome Creek plant is expected to cost $320 million to $390 million. It will be the partnership's largest natural gas processing plant in North Dakota and will increase the partnership's total natural gas processing capacity in the state to 800 MMcf/d. 

In addition to the Lonesome Creek plant, ONEOK Partners plans to invest $230 million to $290 million for related expansions and upgrades to its existing natural gas gathering and compression infrastructure. The Lonesome Creek plant and related infrastructure should be completed by the end of 2015 and will be supported by acreage dedications from producers.

ONEOK Partners expects to invest an additional $100 million to increase capacity on its Bakken NGL Pipeline, which is currently being expanded to 135,000 bpd from an original capacity of 60,000 bpd. This previously announced initial expansion is expected to be completed in the third quarter of 2014. The second expansion of the Bakken NGL Pipeline, which is expected to be completed during the first half of 2016, will increase its capacity to 160,000 bpd to accommodate NGL volumes from the new Lonesome Creek plant.

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