wyoming pipeline authoritywyoming pipeline authority casper, wyoming | may 15, 2012
TRANSCRIPT
Wyoming Pipeline AuthorityCasper, Wyoming | May 15, 2012
Mick UrbanGovernment RelationsWestern States
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ONEOK, Inc.
• 106 years old• Headquarters - Tulsa, OK • FORTUNE 500 company• 4,800 employees• Natural gas distribution• Energy services company• 43.4% owner of ONEOK
Partners
A Premier Energy Company
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ONEOK Partners
• Master Limited Partnership
• Midstream assets; gather, process, transport, store liquids
• $8.9 billion in total assets• $4.7-$5.6 in growth
projects announced
Asset Overview
Natural Gas Gathering & ProcessingNatural Gas PipelinesNatural Gas Liquids Gathering PipelinesNatural Gas Liquids Distribution Pipelines
Growth Projects
• Canadian Valley Plant (OK)– $340 million to $360 million
• Well-connects/upgrades (OK)– $210 million to $230 million
• Sterling III NGL Pipeline (OK,TX) – $610 million to $810 million
• Build MB-2 fractionator (TX)– $300 million to $390 million
Overview – Cana-Woodford Shale and Granite Wash
$1.4 billion to $1.8 billion
NGL Gathering PipelinesNGL Distribution PipelinesNew PipelinesNGL Market HubNGL FractionatorNGL Fractionator – MB-2
Growth Projects
• Gathering and Processing– $1.1 to $1.2 billion– Construct 3 processing plants
Garden Creek – On Line Dec. 2011
Stateline I & II – Under Const.
Divide County Gathering System Well-connects, upgrades and
expansions
• Natural Gas Liquids– $595 to $730 million
Bakken NGL Pipeline Overland Pass Pipeline Expansion Bushton fractionation expansion
• Crude Oil – $1.5 to $1.8 billion
Bakken Crude Express Pipeline
Overview – Bakken Shale
Overland Pass Pipeline
Bakken NGL Pipeline
Bushton Fractionator Expansion
Stateline I and II Plants
Grasslands Plant
Divide County Natural Gas Gathering System
Garden Creek Plant
Project Areas
Shale Plays
Natural Gas Gathering Pipelines
Niobrara Shale
$3.2 billion – $3.7 billion
Bakken Shale
Niobrara Shale
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Garden Creek PlantCompleted December 2011
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Stateline I & 2 ConstructionFebruary 23, 2011
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Stateline I ConstructionFebruary 23, 2011
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Sidney Rail Terminal Expansion7 cars/day to 49 cars
Lack of InfrastructureWhy is the Bakken NGL pipeline needed?
Natural Gas ProcessingNGLs not LNG
Raw Natural Gas
Processing Plant
Methane and Ethane
“Y” Grade Natural
Gas Liquids
Natural Gasoline
Butane
Propane
Consumer Quality Natural
Gas
Bakken Pipeline
• Approximately 525-mile, 12” diameter NGL pipeline– Capacity to transport 60,000 barrels per
day of raw, unfractionated NGLs Expandable to 110,000 barrels with
additional pump stations– $450 to $550 million
• Expected to operate at 1440 psi• Five to seven pumping stations• Coated steel• Generally buried a minimum of three
feet• Monitored 24/7• Construction – Begin spring 2012
• Completed in first half of 2013
MT, WY, CO
$595 million to $730 million
Overland Pass Pipeline Expansion (50% interest)
Bakken Pipeline
Bushton Fractionator Expansion
Bakken Pipeline
• Approximately 300 miles
• Approximately 235 landowners
• Property tax revenue• Jobs and commerce
during construction
Wyoming Segment
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Bakken Express Crude Oil Line
• Bakken Crude Express Pipeline– 1,300-mile crude oil pipeline– Initial capacity of 200,000 barrels per day
Transport light-sweet crude oil from Bakken Shale to Cushing, Okla.
– Construction to begin in late 2013 or early 2014
– Expected to be completed by early 2015– Open season to be held late
summer/early fall 2012
Crude Oil Investment
Bakken Crude Express Pipeline
Overland Pass Pipeline Expansion (50% interest)
Bakken NGL Pipeline
North Line 5 NGL Pipeline
$1.5 billion to $1.8 billion
