Tulsa-based ONEOK, Inc. plans to double its Canadian Valley natural gas processing facility in the STACK to 400 million cubic feet per day to support increasing production growth, according to a company press release issued Monday afternoon.
The Canadian Valley II project in Canadian County, Oklahoma, is expected to be complete by the end of 2018. The cost for the expansion and infrastructure project is approximately $155 million to $165 million.
“The doubling of processing capacity at Canadian Valley is needed to capture rapidly increasing customer production in the STACK play,” said Terry K. Spencer, ONEOK president and chief executive officer. “The expansion will provide producers in the area with essential natural gas processing capacity.”
The expansion of Canadian Valley will bring ONEOK’s total natural gas processing capacity in Oklahoma to nearly 1.1 billion cubic feet per day by 2019.
NGLs produced from the expansion are expected to add approximately 20,000 barrels of additional volumes daily to ONEOK’s existing Oklahoma NGL gathering system.