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ONEOK expands West Texas LPG system

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Hydrocarbon Engineering,

The West Texas LPG Pipeline Limited Partnership, a joint venture between ONEOK and Martin Midstream Partners L.P., plans to invest approximately US$200 million to expand its natural gas liquids (NGL) system into the prolific Delaware Basin – part of the larger Permian Basin.

The project, which is expected to be completed in 3Q18, is supported by long-term dedicated NGL production from two planned third-party natural gas processing plants in northern Reeves County, which are expected to produce up to 40 000 bpd.

West Texas LPG pipeline is an NGL pipeline system that consists of approximately 2600 miles of NGL pipeline in Texas and New Mexico. The system provides transportation services to the Mont Belvieu market centre from nearly 40 third-party natural gas processing plants located in the Permian Basin. The Permian Basin in southeastern New Mexico and western Texas is the largest crude oil and natural gas producing basin in the US.

The Delaware Basin extension includes:

  • The construction of a 120 mile, 16 in. pipeline lateral that will have an initial capacity of 110 000 bpd.
  • The construction of two new pump stations and pipeline looping along the existing West Texas LPG system that will increase its capacity to handle the dedicated volume.

"Extending the West Texas LPG pipeline into the core of the Delaware Basin (one of the fastest growing plays in the US) positions the West Texas LPG system for significant future NGL volume growth," said Terry K. Spencer, ONEOK’s president and CEO.

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Downstream news North America downstream news