Oneok to build Bakken natural gas gathering system

Oneok Partners LP plans to build a 270-mile natural gas gathering system and related infrastructure in Divide County, ND. The system, expected to be completed second-half 2013, will gather and deliver gas from producers in the Bakken shale to the partnership's previously announced 100-MMcfd Stateline II gas processing facility in western Williams County, ND.

Oneok is expanding its Bakken shale activities, investing $1.5-1.8 billion between 2011 and 2014 in its gas gathering and processing and NGL businesses in the region with the $140-160 million it expects to spend on the Divide County system coming in addition to these expansions.

Previously announced projects include the 500-mile NGL Bakken Pipeline and three 100-MMcfd gas processing facilities: the Garden Creek plant, Stateline I plant, and Stateline II plant. Garden Creek entered service December 2011. Oneok expects Stateline II to enter service first-half 2013.

The company said completion of the Divide County gas gathering system will allow it to fill all four of its gas processing plants in the Bakken shale and Three Forks regions.

Oneok secured long-term supply commitments from producers structured with percent-of-proceeds and fee-based components for the new gathering system.

Contact Christopher E. Smith at chriss@ogjonline.com.

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