ONEOK Announces Plans For New Natural Gas Plant - KXNet.com - Bismarck/Minot/Williston/Dickinson-KXNEWS,ND

ONEOK Announces Plans For New Natural Gas Plant

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With no signs of oil production slowing down in the Williston Basin, ONEOK Partners plans to build another natural gas processing plant.

In addition to the new plant, they also plan to expand their Bakken NGL pipeline, all in an effort to reduce the amount of Natural Gas being flared in North Dakota.

ONEOK is the largest natural gas processor in the Bakken and now the company has plans to build it's biggest natural gas processing plant yet, The Lonesome Creek plant.

"Our total processing capacity is about 400 million cubic feet per day as we speak today, when we're done installing this plant we'll be close to 800 million cubic feet per day," ONEOK President Terry Spencer said.

ONEOK currently processes 50 percent of the natural gas in the Bakken, 30 percent of that is being flared right now, but once this new plant is up and running the company plans to reduce that number to 10 percent.

They're also investing in an expansion to their Bakken NGL Pipeline.

"Spending about 100 million dollars just on that pipeline expansion itself where we'll be looping the pipeline to increases it's capacity from an expected 135,000 barrels per day to 160,000 barrels per day," Spencer said.

Like all of ONEOK's plants, Governor Jack Dalrymple says its needed for the oil development in North Dakota.

"We are going to need this capacity, there's no question about it and we will hope that other companies as well as ONEOK continue to play a significant role in this effort," Governor Jack Dalrymple said.

"That natural gas will be used for primary home heating, used for commercial and industrial use in factories, in order for it to be usable, the natural gas liquids that are contained in the gas have to be extracted or stripped down, that's what these processing plants do," Spencer said.

The plant will be located 12 miles west of Watford City and is expected to be complete by the end of 2015.

The new Lonesome Creek Plant will be the sixth natural gas processing plant built in the region since 2010.

 

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