Oneok Inc. on Feb. 21 committed to building $2.3 billion worth of NGL and gas processing infrastructure, headlined by a $1.36 billion, 530-mile liquids pipeline that would move up to 400,000 barrels per day of mixed gas liquids from the Mid-Continent production areas of Oklahoma to the company's facilities in Mont Belvieu, Texas.

In Mont Belvieu, Oneok said it will also be building a 125,000 barrels per day NGL fractionator and related infrastructure. Outside the Gulf Coast region, Oneok said it would add a new 200 MMcf/d processing facility in the Williston Basin.

The NGL conduit, the Arbuckle II pipeline, is scheduled for completion in the first quarter of 2020. It would be expandable to up to 1 million bbl/d with additional pump facilities. If expanded, the project could more than double Oneok's current capacity for delivering supplies from the Mid-Continent to the Gulf Coast. The line is more than 50% contracted with long-term contracts.

The new fractionator, which is fully contracted, would increase Oneok's total NGL fractionation capacity to 965,000 bbl/d. The budget for the project is around $575 million and it is expected to be completed in the first quarter of 2020.

Oneok expects the processing plant in McKenzie County, North Dakota will cost about $400 million and be completed in the fourth quarter of 2019. Upon completion, Oneok's processing capacity in the basin would expand to over 1.2 Bcf/d. The processing plant would also add NGL volumes to the company's NGL gathering system and natural gas volumes to the Northern Border pipeline, which is 50% owned by Oneok. The rest is owned by TC PipeLines LP.

The projects are anticipated to yield adjusted EBITDA multiples of 4x to 6x. Oneok plans to fund the projects using cash generated from operations, as well as short- and long-term borrowings. The company does not plan to issue additional equity in 2018 and "well into 2019."