ONEOK, Inc. announced plans this week to double the capabilities of its Canadian Valley natural gas processing facility in the STACK play western Oklahoma in order to accommodate increasing production.
The Canadian County, Oklahoma plant will expand to 400 million cubic feet per day (MMcf/d) from 200 MMcf/d.
ONEOK also recently announced a new 200 MMcf/d firm offload agreement to a third-party processor. The company expects to add approximately 20,000 barrels per day of natural gas liquids (NGL) through the expansion.
“The doubling of processing capacity at Canadian Valley is needed to capture rapidly increasing customer production in the STACK play,” Terry K. Spencer, ONEOK president and CEO, said. “The expansion will provide producers in the area with essential natural gas processing capacity.”
The Canadian Valley II expansion project and related infrastructure costs are expected to total approximately $155 million to $165 million.
ONEOK plan to complete the expansion by the end of 2018. By 2019, the company is projected to have a total natural gas processing capacity of approximately 1.1 billion cubic feet per day in Oklahoma.
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