ONEOK Partners L.P.
) completed its three important projects - Bakken natural gas
liquids (NGLs) pipeline, Stateline II plant and an ethane header
pipeline. All the three ventures are part of the partnership's
$4.7-$5.3 billion growth program through 2015.
ONEOK Partners invested $450-$550 million in its 600-mile Bakken
NGL Pipeline. The pipeline will carry 60,000 barrels per day
(bpd) of unfractionated NGLs from the Bakken Shale in the
Williston Basin in North Dakota. to the Overland Pass Pipeline in
northern Colorado. Later, NGL volumes will be transported to the
partnership's Mid-Continent NGL fractionation and storage
facilities in central Kansas. This is the first pipeline to
deliver NGL from the Williston Basin to an NGL fractionation and
storage infrastructure in the Mid-Continent and Texas Gulf Coast.
The completed Stateline II plant has a capacity to process 100
million cubic feet per day of natural gas. The partnership has
spent $135-$150 million for this project, located in western
Williams County, ND. Since late 2011, ONEOK Partners has
completed three natural gas processing facilities in the
Williston Basin, including the Garden Creek, Stateline I and
Stateline II plants. The new installation will enable the
partnership to increase processing capability by more than 4
times from the 2011 level.
The third project, a 12-inch diameter ethane header pipeline,
cost the partnership $23 million. This new pipeline has a
capacity of 400,000 bpd of purity ethane and generates a new
point of interconnection between the partnership's NGL
fractionation assets in the Mont Belvieu, Texas and numerous
petrochemical customers. The partnership has already received
contractual commitments from some petrochemical companies.
Bakken Shale is situated in western North Dakota, Eastern
Montana, and Saskatchewan and Manitoba in the Williston Basin. As
per a U.S. Geological Survey, Bakken Shale has 4.3 billion
barrels of crude oil and 2.0 trillion cubic feet of gas and
another 150 million barrels of natural gas liquids.
The Stateline II plant is in sync with the existing
infrastructural development initiatives undertaken by the
partnership in Bakken Shale. ONEOK Partners is in the middle of a
270-mile natural gas gathering system and a related
infrastructure project in Divide County, N.D. After completion,
this pipeline will gather natural gas from the operators in
Bakken Shale and deliver the same to the Stateline II natural gas
ONEOK Partners has decided to invest more in Bakken Shale to
cater to the increasing demand from natural gas operators. Apart
from the partnership, another pipeline major
Plains All American Pipeline L.P.
) also intends to expand its operations in this natural
energy-rich region and has started construction of a cryogenic
gas processing plant in this area.
To reap the benefits of the vast resources of Bakken Shale, the
operators are making strategic investments in the infrastructure
projects. ONEOK Partners plans to invest roughly $100 million to
set up additional pumping stations on the Bakken NGL Pipeline to
strengthen its coverage in the region.
This will enable the partnership to increase its capacity by
125% to 135,000 bpd. We believe that Bakken Shale will play an
important role to meet the ever increasing demand for fossil
DELEK LOGISTICS (DKL): Free Stock Analysis
NUSTAR ENERGY (NS): Free Stock Analysis
ONEOK PARTNERS (OKS): Free Stock Analysis
PLAINS ALL AMER (PAA): Free Stock Analysis
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ONEOK Partners currently has a Zacks Rank #3 (Hold). Other stocks
from the industry that are presently performing better include
Delek Logistics Partners LP
NuStar Energy L.P.
). All the stocks carry a Zacks Rank #2 (Buy).
Tulsa, OK-based ONEOK Partners is one of the largest publicly
traded master limited partnerships and a leader in gathering,
processing, storing and transporting natural gas in the United