ONEOK Plans Gas Pipeline: Project Would Connect State With Gulf Coast

By Adam Wilmoth, The Daily Oklahoman

Mar. 20–TULSA — ONEOK Partners LP on Monday announced plans for a $260 million natural gas liquids pipeline to service south Oklahoma and north Texas.

The 440-mile Arbuckle Pipeline would begin in Stephens County and run though the natural gas-rich Barnett Shale region of north Texas before connecting to processing facilities on the Texas Gulf Coast.

“Much like our previously announced Overland Pass Pipeline expansion into the Rocky Mountain region, the Arbuckle Pipeline will provide access to another area of rapidly growing natural gas liquids production in the Barnett Shale play in Texas,” said John W. Gibson, ONEOK Partners’ president and chief executive officer. “These areas are two of the most active for natural gas drilling in the country.”

The Arbuckle line initially would transport 160,000 barrels per day of raw natural gas liquids. Construction of the 12- and 16-inch pipeline is expected to be complete by early 2009.

The line would be the first raw natural gas pipeline connecting the Barnett Shale to the Gulf Coast, ONEOK spokeswoman Megan Washbourne said.

Besides the benefit to ONEOK, the new pipeline also could help natural gas operators in the area, Devon Energy Corp. spokeswoman Alesha Leemaster said.

“We are in favor of having additional pipeline capacity in areas where we are operating,” she said. “It is definitely needed in that area. Additional pipelines will be added competition and will be good for production.”

Devon controls about half of the Barnett Shale field, which is producing more than 1 billion cubic feet of natural gas per day.

—–

Copyright (c) 2007, The Daily Oklahoman

Distributed by McClatchy-Tribune Business News.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

NYSE:OKS, NYSE:DVN,