Oneok Inc. has planned to expand its two of its pipelines and a processing plant in the US.
The company will expand its 240,000 bpd Elk Creek natural gas liquids (NGL) pipeline to 400,000 bpd by adding 10 pump stations. The project will cost USD305 million and the additional capacity will be operational in early 2021 and the nametag capacity to be online in the third quarter of next year.
Oneok will also expand its West Texas liquefied petroleum gas (LPG) pipeline in the Permian basin by 100,000 bpd. This project will cost USD310 million and is scheduled to be completed in the second quarter of 2021.
It also plans to expand its Demicks Lake natural gas processing plant in the Williston basin, McKenzie County, North Dakota, by 200 MMcfd to a total of 600 MMcfd. The project will cost USD305 million and will likely be thorough in the third quarter of next year.
Oneok reported its net income in the fourth quarter of 2019 rose by 9% year-on-year while in the full year it showed an 11% increase.
The increase was due to the increasing volume of NGL and natural gas, higher average fee rates in NGL and natural gas gathering and processing segments, and increased transportation services in the natural gas pipeline segment.
However, these gains were offset by the weaker earnings from optimization and marketing on the back of the wider location price differentials in 2018 in the NGL segment, along with higher employee-related costs related to the growth of Oneok's operations and higher third-party transportation and fractionation costs in the NGL segment
Last year’s reading was also affected by the higher depreciation expense on account of completed growth projects, narrower product price differentials in the NGL segment and lower realized NGL and natural gas prices in the natural gas gathering and processing segment.
