ONEOK Inc. (ticker: OKE, exchange: New York Stock Exchange (.N))
News Release -
ONEOK Partners Announces $36 Million Expansion of Sterling Natural Gas Liquids Distribution Pipeline
TULSA, Okla., July 27, 2010 /PRNewswire via COMTEX News Network/ -- ONEOK Partners, L.P. (NYSE: OKS) today announced plans to install seven additional pump stations for approximately $36 million along its existing Sterling I natural gas liquids (NGL) distribution pipeline, increasing its capacity by 15,000 barrels per day, which will be supplied by the partnership's Mid-Continent NGL infrastructure.
The Sterling I pipeline transports NGL purity products from the partnership's fractionator in Medford, Okla., to the Mont Belvieu, Texas, market center and is currently operating at capacity.
"This expansion enables us to transport additional NGL purity products for our customers under fee-based contracts, as well as to increase the capacity available for our optimization activities," said Terry K. Spencer, ONEOK Partners chief operating officer.
"Our natural gas liquids optimization activities between the Mid-Continent and the Gulf Coast will be substantially enhanced by this expansion and by the additional capacity that will become available at our Mont Belvieu fractionator as a result of a significant contract expiring in the third quarter 2010 and when our 60,000 barrel per day fractionation services agreement with Targa Resources Partners begins in the second quarter 2011," Spencer concluded.
The pump station installation will begin later this year and is expected to be completed in the second half of 2011.
In addition to the Sterling I project, the partnership continues to evaluate additional expansion of its Mid-Continent to Gulf Coast NGL distribution pipeline capacity, based on demand for its services.
ONEOK Partners owns a natural gas liquids system in the Mid-Continent and the Gulf Coast, which includes fractionators and storage in Mont Belvieu, Texas; Bushton, Conway and Hutchinson, Kan.; and Medford, Okla. It also owns interstate natural gas liquids distribution pipelines between Conway and Mont Belvieu, and NGL and refined petroleum products distribution pipelines that connect its Mid-Continent NGL infrastructure to Midwest markets, including Chicago.
View a map of the Sterling I pipeline.
ONEOK Partners, L.P. (NYSE: OKS) is one of the largest publicly traded master limited partnerships, and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. and owns one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent and Rocky Mountain regions with key market centers. Its general partner is a wholly owned subsidiary of ONEOK, Inc. (NYSE: OKE), a diversified energy company, which owns 42.8 percent of the overall partnership interest. ONEOK is one of the largest natural gas distributors in the United States, and its energy services operation focuses primarily on marketing natural gas and related services throughout the U.S.
Some of the statements contained and incorporated in this news release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, as amended. The forward-looking statements relate to our anticipated financial performance, management's plans and objectives for our future operations, our business prospects, the outcome of regulatory and legal proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. The following discussion is intended to identify important factors that could cause future outcomes to differ materially from those set forth in the forward-looking statements.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "should," "goal," "forecast," "guidance," "could," "may," "continue," "might," "potential," "scheduled" and other words and terms of similar meaning.
The forward-looking statements in this news release relating to the estimated costs and completion schedules with respect to the referenced growth construction projects are subject to known and unknown risks, uncertainties and other factors that may cause actual project costs and completion schedules to be materially different from those included in the forward looking statements. These risks and uncertainties include, but are not limited to, timely receipt of necessary governmental approvals and permits, our ability to control the costs of construction, including costs of materials, labor and right-of-way, and other factors that may impact our ability to complete these projects within budget and on schedule.
Analyst Contact: Andrew Ziola
Media Contact: Brad Borror
SOURCE ONEOK Partners, L.P.