Oneok Partners to Extend Pipeline

By Jason Womack, Tulsa World, Okla.

Feb. 5–Oneok Partners LP announced plans Monday to build a $25 million pipeline extension connecting two natural gas processing plants in southeast Oklahoma to its Mid-Continent natural gas liquids gathering system.

The 78-mile extension will move raw natural gas liquids from the Woodford Shale, a natural gas rich formation located in southeast Oklahoma.

The 6- and 8-inch diameter pipeline will connect to a processing plant planned by Oklahoma City-based Devon Energy Corp. in Hughes County and a plant owned by Antero Resources Midstream Corp in Coal County.

Oneok Partners said the plants will have a combined production capacity of 25,000 barrels per day of natural gas liquids, which include propane, butane and ethane.

The pipeline extension, which is scheduled for completion in the second quarter, will allow Oneok Partners to transport the liquids to storage and fractionation facilities in Conway, Kan. And it will eventually allow the partnership to bring natural gas liquids to Mount Belvieu, Texas, once its Arbuckle Pipeline is completed in 2009.

The Arbuckle Pipeline, a 440-mile conduit, will pass through the Barnett Shale,

the largest gas play in Texas, and bring natural gas liquids to a fractionation facility on the Gulf Coast of Texas. The Arbuckle will have a capacity of 160,000 barrels per day and will tie into the partnership’s Mid-Continent natural gas liquids gathering system in Stephens County, Okla.

Terry Spencer, executive vice president of Oneok Partners’ natural gas liquids business, said in a prepared statement that the pipeline extension and the Arbuckle will complement each other.

“Arbuckle will not only be moving NGLs from the Barnett Shale of north central Texas, it will also transport natural gas liquids from Oklahoma,” he said in the statement.

The Woodford Shale is one of the most active natural gas plays in the state. There are 42 active drilling rigs in the formation, with production concentrated in Atoka, Coal, Hughes and Pittsburg counties.

The extension is part of $1.6 billion in internally funded growth projects that Oneok Partners is planning through 2009.

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Jason Womack 581-8380 jason.womack@tulsaworld.com

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