ONEOK Partners LP announced on April 21 that three natural gas gathering and processing and NGL projects in their planned $6 billion to $6.4 billion capital-growth program through 2016 have been completed. The three projects are estimated at about $1 billion and include the Sterling III Pipeline, the Canadian Valley natural gas processing facility in the Cana-Woodford Shale and an ethane/propane splitter at the company’s Mont Belvieu, Texas, NGL storage facility.
The Sterling III Pipeline has a transport capacity of 193,000 barrels per day (bbl/d) of either unfractionated NGL or NGL purity products and connects ONEOK Partner’s NGL infrastructure at Medford, Okla., to its storage and fractionation facility at Mont Belvieu. The Sterling I and II pipelines are also being reconfigured to transport either unfractionated NGL or NGL purity products. The Sterling III Pipeline traverses the Woodford Shale and provides NGL transportation capacity from the Cana-Woodford Shale and Granite Wash. The total cost for the Sterling III construction and the reconfiguration of the Sterling I and II pipelines is about $760 million to $790 million.
The Canadian Valley plant in the Cana-Woodford Shale will add 200 million cubic feet per day (MMcf/d) to the partnership’s NGL processing capacity in Oklahoma, increasing production to about 700 MMcf/d. The Canadian Valley plant is ONEOK’s largest NGL processing facility in Oklahoma and cost about $340 million to $360 million. The completed $46 million ethane/propane splitter in Mont Belvieu has a production capacity of 40,000 bbl/d, producing 32,000 bbl/d of purity ethane and 8,000 bbl/d of propane.
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