ONEOK to expand West Texas LPG system into Delaware Basin

TULSA, Okla. — ONEOK, Inc. 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 $200 MM to expand its natural gas liquids (NGL) system into the prolific Delaware Basin, part of the larger Permian Basin.

Courtesy of ONEOK, Inc.

This project, which is expected to be completed in the Q3 2018, is supported by long-term dedicated NGL production from two planned third-party natural gas processing plants in northern Reeves County, which we estimate will produce up to 40,000 bpd.

The Delaware Basin extension includes:       

• The construction of an approximately 120-mi, 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.

West Texas LPG Pipeline is an NGL pipeline system that consists of approximately 2,600 mi 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 US.

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