September 11, 2008
Oneok Partners Plans D-J Basin Lateral Pipeline
Oneok Partners has announced plans to build a $70 million to $80 million natural gas liquids lateral pipeline, connecting the Denver-Julesburg Basin in northeastern Colorado with the Overland Pass Pipeline that is currently being constructed.
The 125-mile Denver-Julesburg (D-J) Basin Lateral Pipeline is designed to transport as much as 55,000 barrels per day of raw natural gas liquids from the D-J Basin to the 760-mile Overland Pass Pipeline, which has the potential to transport 255,000 barrels per day. Construction of the six to 12-inch diameter lateral pipeline is under way with initial start-up scheduled in early 2009.
The D-J Basin Lateral Pipeline will transport natural gas liquids from five existing natural gas processing facilities in the D-J Basin. Supply commitments are in place for up to 33,000 barrels per day of raw natural gas liquids, with growth potential for another 10,000 barrels per day of supply from new drilling and plant upgrades in the next two years.
Terry Spencer, executive vice president of Oneok Partners's natural gas liquids business, said: "The projected volumes of natural gas liquids from these plants in the D-J Basin will bolster supply on Overland Pass Pipeline and into our fractionation and storage facilities in the Mid-Continent."