ONEOK Expands Pipeline Network With Major Projects Nationwide
An annual report released by ONEOK shows the Oklahoma-based energy firm is in the midst of some major construction projects, not just in Oklahoma but other states where it has a 60,000-mile pipeline network.
Energy Demand Growth Drives Expansion
Leadership said energy demand is growing across the nation and ONEOK is well positioned to play a critical role in the evolving energy landscape.
The company reports it has at least five major projects underway with one expected to be completed sometime later this year. Others have completion dates in 2028 and 2029.
Denver Pipeline Expansion Targets Fuel Supply
The Greater Denver refined products pipeline expansion is designed to increase refined products supply from the Mid-Continent and Gulf Coast to the greater Denver area of Colorado. It is designed to support growing regional demand and market opportunities.
The company explained the project will also increase connectivity with the Denver International Airport.
How is it being accomplished? Through the construction of a new 230-mile, 16-inch diameter pipeline from Scott City in western Kansas to DIA as well as upgrading of pump stations along the existing Refined Products pipeline system. ONEOK expects completion sometime in the middle of this year.
Medford NGL Fractionator Rebuild Continues
The company is still working on rebuilding its Medford NGL fractionator that was badly damaged in a 2022 fire in northern Oklahoma.
The 210,000-barrels-a-day natural gas liquids fractionation plant was consumed by flames ignited in an explosion in July of that year.
The rebuild was originally estimated to cost $385 million. The first phase is anticipated to be finished later this year with a second phase to be completed in the first quarter of 2027.
Natural Gas Segment Earnings Increase
ONEOK has four divisions of natural gas gathering and processing.
The company told investors its Natural Gas Gathering and Processing segment saw an increase in earnings in 2025, mostly due to a full year of earnings from EnLink and higher volumes in the Mid-Continent and Rocky Mountain regions, offset partially by lower realized NGL prices, net of hedging, and the impact from the divestiture of certain nonstrategic assets in 2024.
Permian Basin Projects Expand Capacity
After completing the Delaware Basin JV acquisition totaling $941 million nearly a year ago, the company announced plans to construct what it calls the Bighorn natural gas processing plant in the Permian Basin.
It will have a processing capacity of 300 MMcf/d and the ability to treat natural gas containing high levels of carbon dioxide.
“We expect the Bighorn plant, including the carbon dioxide treater, to cost approximately $365 million. The Bighorn plant is supported by acreage dedications with long-term primarily fee-based contracts and is expected to be completed in mid-2027,” stated leaders in the company’s annual report.
ONEOK also had another major Permian Basin project which involved the relocating of a 150 MMcf/d processing plant from North Texas. Completion was expected this year.
The company also is expanding two existing operations in the Permian Basin to provide an incremental 110 MMcf/d of processing capacity. Completion should be in the third quarter of this year.
Texas LPG Export Terminal and Pipeline
ONEOK is still constructing a $1 billion liquefied petroleum gas export terminal in Texas City, Texas as well as a new 24-inch pipeline from its Mont Belvieu, Texas storage facility to the new terminal. Completion won’t be until early 2028.
Eiger Express Pipeline Project
Another major project that won’t be finished until mid-2028 is construction of a 450-mile, 48-inch Eiger Express Pipeline, designed to move up to about 3.7 Bcf/d of natural gas from the Permian Basin to Katy, Texas.
ONEOK anticipated an investment of $350 million for the project. ONEOK’s total ownership interest in the pipeline will be 25.5%.
Louisiana Storage Expansion Project
Still another ONEOK project involves expansion of a Louisiana facility to increase the working gas storage capacity.
Work on the Jefferson Island Storage Hub facility will be in two phases. The first phase won’t be finished until the second half of 2028 and the second will be completed in early 2029.
Extensive Pipeline and Storage Network
ONEOK has 8,300 miles of natural gas pipelines as well as eleven underground natural gas storage facilities: two in Oklahoma, two in Kansas, four in Texas and three in Louisiana.