Tulsa Energy Firm To Construct $1.4 Billion Natural Gas Pipeline

SEATTLE (Oil Monster): The Tulsa-based energy firm ONEOK Inc. has announced its plan to build a pipeline to transport natural gas liquids (NGL) from Eastern Montana region to existing facilities in Kansas. The proposed pipeline would cross through Wyoming and Colorado, thereby spanning over four states. The plan is yet to receive final approval from federal, state and local officials.

The 900-mile Elk Creek Pipeline is expected to have a transportation capacity of up to 240,000 barrels of NGL per day. With additional pump facilities in future, the output could be boosted to up to 400,000 barrels per day. The company          expects a total spending of around $1.4 billion- $1.2 billion on pipeline and the balance $200 million on infrastructure support. It expects the pipeline to be operational by next year, subject to regulatory approvals.

According to Terry K. Spencer, ONEOK president and chief executive officer, the Elk Creek pipeline will reinforce ONEOK’s position in several high-production areas including the Bakken. Further, it could offer additional reliability and redundancy on its NGL pipeline system, he noted. The new pipeline will help the company to meet increased demand from producers as the existing Bakken and Overland Pass pipelines are already operating at their full capacities, Spencer added.

The proposed pipeline is said to have impact on production in North Dakota. Although, the pipeline doesn’t pass by North Dakota, it would have connections to existing pipelines, thereby capable of moving North Dakota natural gas. This in turn could result in increased production in North Dakota.