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ONEOK plans 2nd expansion of West Texas LPG pipe system

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ONEOK plans 2nd expansion of West Texas LPG pipe system

Midstream giant Oneok Inc. said it plans to invest about $295 million in another expansion of its West Texas LPG Pipeline LP system, which provides NGL takeaway capacity for Permian Basin producers.

The expansion includes the construction of four new pump stations, two pump station upgrades and pipeline looping that would boost the system's mainline capacity by 80,000 barrels per day, the company said in a Sept. 10 news release. Oneok would also build additional infrastructure to link the pipeline system to the company's Arbuckle II pipeline project.

The expansion, which Oneok expects to complete in the first quarter of 2020, would be 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 bbl/d of NGL. The company is in talks with producers and processors in the region for additional potential volume commitments.

Oneok's 110,000 bbl/d lateral extension of the West Texas LPG system into the Delaware Basin and expansion of the mainline system is under construction and expected to be in service in September.