ONEOK, Inc., a major midstream service provider and owner of one of the nation’s largest natural gas liquids (NGL) systems, has announced plans to invest approximately $295 million to expand its West Texas LPG Limited Partnership (West Texas LPG) pipeline system, which provides natural gas liquids (NGL) takeaway capacity for Permian Basin producers.
The expansion project, which is expected to be completed in the first quarter of 2020, is 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 bpd of NGLs.
The expansion includes the construction of four new pump stations, two pump station upgrades and pipeline looping that will increase the West Texas LPG mainline capacity by 80,000 bpd, as well as additional infrastructure to connect West Texas LPG with ONEOK’s previously announced Arbuckle II Pipeline project.
“This second expansion of the West Texas LPG Pipeline system will serve continued growth in the Permian Basin and positions ONEOK for additional future expansion opportunities in the Permian,” said Terry K. Spencer, ONEOK president and chief executive officer.
ONEOK’s previously announced 110,000 bpd pipeline lateral extension of the West Texas LPG system into the Delaware Basin and expansion of the existing mainline system is currently under construction and expected to be in service this month.
The West Texas LPG Pipeline is an NGL pipeline system that provides takeaway capacity to Permian Basin producers and consists of approximately 2600 miles of NGL pipeline in Texas and New Mexico. The system provides transportation services to the Mont Belvieu market center from nearly 40 third-party natural gas processing plants located in the Permian Basin. The Permian Basin in southeastern New Mexico and western Texas is the largest crude oil and natural gas producing basin in the U.S.