US ONEOK to build natgas processing plant in North Dakota

31 July 2014 00:01 Source:ICIS News

HOUSTON (ICIS)--ONEOK plans to build a 200 million cubic feet/day (200mcf/day) natural gas processing plant in North Dakota, the US-based midstream company said on Wednesday.

The Demicks Lake plant will be built in McKenzie county, North Dakota, and it will process natural gas produced from the Bakken shale in the Williston basin, the company said.

The plans should cost $330m-430m, and it should be completed in the third quarter of 2016. Another $185m-240m will be spent to build the necessary natural-gas infrastructure.

The company has also moved up the startup date for its Garden Creek III processing plant to Q4 2014 from Q1 2015. The plant is also being built in McKenzie county, and it will have a capacity of 120mcf, up from the 100mcf that ONEOK initially planned.

"Crude-oil and natural gas production in the Williston Basin continues to increase, and we remain committed to building essential natural gas gathering and processing infrastructure that will enable producers to capture and process these growing volumes and reduce natural gas flaring in North Dakota," said ONEOK CEO Terry Spencer.

North Dakota has made it a goal to reduce flaring from its oil wells.

Crude production in the state has increased faster than the infrastructure necessary to handle the associated gas produced at the wells. As a result, oil producers are flaring the gas.
By Al Greenwood