Under terms of the agreement, Oneok Partners has contracted for 60,000 barrels per day (bpd) of fractionation services at the Cedar Bayou facility, which is currently being expanded to 275,000bpd from 215,000bpd and is expected to be operational during the second quarter of 2011.
As part of the expansion, Targa Resources Partners and Oneok Partners plan to construct interconnection facilities to link the Cedar Bayou fractionation facility with Oneok Partners’ recently completed Arbuckle Pipeline, a 440-mile raw NGL pipeline extending from southern Oklahoma through the Barnett Shale of north Texas and on to Oneok Partners’ fractionation and storage facilities at Mont Belvieu.
In addition to an 80% interest in its MB-1 fractionator in Mont Belvieu, Oneok Partners also owns NGL fractionators in Medford, Oklahoma; in Bushton and Hutchinson, Kansas; and a 10% interest in a fractionator in Conway, Kansas. Oneok Partners’ net capacity in these fractionators is approximately 550,000bpd.
Terry Spencer, chief operating officer of Oneok Partners, said: “This agreement provides us with incremental fractionation capability in a timely and cost-effective manner – enabling us to continue providing value-added services to our NGL producers and customers from new supplies in the Mid-Continent, north Texas and Rocky Mountain regions.”
