ONEOK Expands NGL Infrastructure with Major Project Completions
ONEOK, Inc., a leading midstream service provider, has recently announced the completion of two significant projects in its natural gas liquids (NGL) sector, further strengthening its infrastructure capabilities. ONEOK has successfully completed the MB-6, a 125,000-barrel per day (bpd) NGL fractionator located in Mont Belvieu, Texas. This new facility boosts ONEOK's total fractionation capacity to over 1 million bpd, making it one of the largest in the industry. The MB-6 fractionator reduces the company's dependence on third-party services, ensuring more control over NGL processing and meeting the surging market demand for these products.
Alongside the MB-6, ONEOK has fully looped the West Texas NGL Pipeline system, enhancing its capacity to 515,000 bpd. This expansion is crucial for transporting NGLs from the prolific Permian Basin. With plans for additional pump stations by mid-2025, ONEOK anticipates further increasing this capacity to 740,000 bpd, positioning the company to handle future growth in NGL production.
These projects underscore ONEOK's commitment to expanding its midstream infrastructure to serve growing production areas and meet market needs. As such, this not only improves operational efficiency but also supports the energy needs of both domestic and international markets.
The completion of these projects is part of ONEOK's broader strategy to invest in midstream solutions that ensure reliability and scalability. These developments are expected to drive long-term, fee-based earnings for ONEOK, aligning with the increasing demand for NGLs in various industries, from petrochemicals to heating fuels.
ONEOK's recent announcements reflect a strategic push towards bolstering its NGL handling and distribution network, reinforcing its role as a key player in America's energy infrastructure landscape.
Disclosure: I am currently an investor in ONEOK, Inc. (OKE). This statement is not intended as investment advice. Always conduct your own research or consult with a financial advisor before making investment decisions.
Read the full news release on ONEOK’s website here.