August 1, 2012

ONEOK to build new gas plant north of Watford

By Neal A. Shipman
Farmer Editor

In an effort to turn flared natural gas from existing oil wells into a marketable commodity, OKEOK Partners will be building a new natural gas processing plant northeast of Watford City.
The new facility, the Garden Creek II plant, will be built next to the existing Garden Creek plant and will process 100 million cubic feet per day of natural gas from the Bakken.
According to North Dakota Governor Jack Dalrymple, ONEOK Partners plans to continue investing in North Dakota’s energy industry by building a new natural gas processing plant which is an important step in building the state’s energy industry.
“ONEOK continues to be a strong partner in expanding North Dakota’s energy industry, especially in the area of natural gas gathering and processing,” Dalrymple said. “Because of their significant investments in our state, we are able to further reduce flaring at oil well sites, decrease traffic congestion and impacts to our roads, and create new markets for our resources. The Garden Creek II plant will significantly increase North Dakota’s capability to process and export natural gas products.”
The Garden Creek II plant will cost approximately $310 million to $345 million to build and is expected to be in service during the third quarter of 2014. The new processing facility will be built adjacent to the company’s existing Garden Creek natural gas processing plant, which was completed in December 2011.
In addition to the new plant, ONEOK also announced plans to invest approximately $100 million to install additional pump stations on the Bakken Natural Gas Liquids Pipeline to increase its capacity from 60,000 barrels per day to 135,000 barrels per day. The 525- to 615-mile pipeline will transport natural gas liquids from the Bakken Shale to another pipeline that extends from Wyoming to Kansas. The pipeline is currently under construction and is expected to be operational during the first half of next year.
ONEOK’s Stateline I and Stateline II natural gas processing plants are currently under construction in western North Dakota and are expected to be in service during the third quarter of this year and the first half of 2013. When completed, the combined natural gas processing capabilities of all of ONEOK’s North Dakota plants will be 490 million cubic feet per day. The company’s recent announcement brings its total investment in North Dakota between now and 2015 to between $3.6 billion and $4.2 billion.
Dalrymple has been working to encourage greater development of the state’s oil and gas pipelines and natural gas processing facilities. Three years ago, North Dakota produced 243 million cubic feet of natural gas per day. Today, the state produces more than 650 million cubic feet of natural gas daily.