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ONEOK announces West Texas LPG pipeline expansion

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World Pipelines,

ONEOK, Inc. has announced that the West Texas LPG Pipeline Limited Partnership – a joint venture between ONEOK, which is the operator and owns 80%, and Martin Midstream Partners L.P., which owns 20% – plans to invest approximately US$200 million to expand its natural gas liquids (NGL) system into the prolific Delaware Basin, part of the larger Permian Basin.

This project, which is expected to be completed in the third quarter of 2018, is supported by long-term dedicated NGL production from two planned third party natural gas processing plants in northern Reeves County, which is estimated to produce up to 40 000 bpd.

The Delaware Basin extension includes: the construction of an approximately 120 mile,16 in. pipeline lateral that will have an initial capacity of 110 000 bpd; and the construction of two new pump stations and pipeline looping along the existing West Texas LPG system that will increase its capacity to handle the dedicated volume.

"Extending the West Texas LPG pipeline into the core of the Delaware Basin, one of the fastest growing plays in the US, positions the West Texas LPG system for significant future NGL volume growth," said Terry K. Spencer, ONEOK President and Chief Executive Officer.

West Texas LPG pipeline is an NGL pipeline system that consists of approximately 2600 miles of NGL pipeline in Texas and New Mexico. The system provides transportation services to the Mont Belvieu market centre 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 US.

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