ONEOK, Inc. today announced the West Texas LPG Pipeline Limited Partnership, a joint venture between ONEOK and Martin Midstream Partners L.P., will invest approximately $200 million to expand the West Texas LPG Pipeline into Delaware Basin.
The project, which is expected to be finished in the third quarter of 2018, is supported by long-term dedicated natural gas liquids production from two planned third-party natural gas processing plants in northern Reeves County, which are estimated to produce up to 40,000 barrels per day (bpd).
The Delaware Basin extension consists of:
- The construction of an approximately 120-mile, 16-inch 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 U.S., positions the West Texas LPG system for significant future NGL volume growth,” said Terry K. Spencer, ONEOK president and chief executive officer.
The West Texas LPG Pipeline is an NGL pipeline system that includes approximately 2,600 miles of NGL pipeline in Texas and New Mexico. The system provides transportation services to the Mont Belvieu market center from nearly 40 third-party natural gas processing plants located in the Permian Basin.