Oneok will invest $295 million to expand its West Texas LPG pipeline system.
The system provides natural gas liquids takeaway capacity for Permian Basin producers. The expansion is supported by long-term dedicated NGL production from six third-party natural gas processing plants in the Permian Basin that are expected to produce up to 60,000 barrels per day of NGLs.
The expansion includes the construction of:
- Four new pump stations, two pump station upgrades and pipeline looping that will increase the West Texas LPG mainline capacity by 80,000 barrels per day.
- Additional infrastructure to connect West Texas LPG with Oneok's previously announced Arbuckle II Pipeline project
Terry Spencer, Oneok president and CEO, says: 'This second expansion of the West Texas LPG Pipeline system will serve continued growth in the Permian Basin and positions Oneok for additional future expansion opportunities in the Permian.'
The pipeline provides takeaway capacity to Permian Basin producers and consists of 2,600 miles of NGL pipeline in Texas and New Mexico.
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