Bakken NGL Pipeline Progressing

Oneok Partners representatives Steve Johnson, government regulations, and Brad Borror, corporate communications, met last week with area press and Sidney Chamber of Commerce Executive Director Wade Van Every to discuss progress of the future Bakken NGL (Natural Gas Liquid) Pipeline.

“We are very encouraged by the progress being made.” said Johnson. “Contacting and negotiating with landowners is moving forward and the regulatory agencies involved have been very accommodating.”

Settlement with about 40% of the landowners in Montana has been made and plans to begin construction of the pipeline in set to begin May or June 2012, continuing until weather allows. “We want to do it right,” said Borror, “so construction in the winter is not an option.” The pipeline is anticipated to be in service by 2013.

In July, Oneok Partners, a Tulsa, OK, based company, announced plans to build the multi-million dollar natural gas liquids pipeline through the region. The 500-mile Bakken Pipeline, starting near Sidney and traveling south through Wyoming into northern Colorado, will transport raw, unfractionated natural gas liquids from natural gas processing plants in the Bakken Shale area to the company’s 50%-owned existing Overland Pass Pipeline which travels to Kansas where natural gas liquids are processed.

“This will be a safe and economical pipeline,” said Johnson. “It will economically benefit the area with property tax dollars along with other businesses the construction will use.” About 180 miles of the pipeline will run south through eastern Montana. Oneok will hire contractors to construct the pipeline in approximately four spreads.

“The rapidly increasing crude oil drilling activity in the region necessitates additional capacity to gather and process the growing natural gas volumes.” said Terry K. Spencer, Oneok Partners chief operating officer, in a Oneok Partners press release in January.

Construction is now being done to complete three other natural gas processing facilities and gathering pipelines in Western North Dakota. Along with Oneok Rockies Midstream Plant, previously known as Bear Paw Energy Plant, they will quadruple the current processing capacity in the Williston Basin area. Oneok Partners will be investing $1.5-1.8 billion in these growth projects.

The Bakken NGL pipeline is expected to deliver 60,000 barrels per day. Currently, Oneok has sold 80% of the gas that will be transported by the pipeline. The gas that is currently being burned off will be able to be contained and transported more efficiently.

The unfractionated NGLs produced from the Bakken Shale is transported by truck or rail at this time. With both NGL and crude pipelines, Bakken NGL and Keystone XL, being built, there will be less trucks hauling crude and NGLs to the market. A great benefit to the area.