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New $1.4 Billion Natural Gas Pipeline Planned

Planned line will accommodate over-capcity product from Bakken pipeline

January 08, 2018

Tulsa-based ONEOK has announced it plans to build a 900-mile natural gas liquids (NGL) pipeline with a 240,000 barrel per day capacity from its Riverview terminal in eastern Montana to its existing facilities in Bushton, Kansas.

Name the Elk Creek Pipeline, the line will have the capability to be expanded to 400,000 bpd with additional pump facilities.

The company expects to spend $1.2 billion on the pipeline and $200 million on infrastructure support.

The Elk Creek line parallels the existing Bakken NGL pipeline, then veers southeast to follow the Overland Pass pipeline.

"The existing Bakken NGL and Overland Pass Pipelines are operating at full capacity. Additional NGL takeaway capacity is critical to meeting the needs of producers who are increasing production and are required to meet natural gas capture targets in the Williston Basin," said Terry K. Spencer, ONEOK president and chief executive officer.

The Elk Creek pipeline is expected to be operational at the end of 2019.

In other pipeline news, AP reports Virginia-based utility Dominion Energy's planned $14 billion merger with SCANA Corporation energy company could open the door for an expansion of the proposed Atlantic Coast Pipeline.

Dominion operates a network of natural gas transmission lines including and had earlier expressed interest in expansion into South Carolina where SCANA's operations include service to about 1.6 million electric and natural gas residential and business accounts in South Carolina and North Carolina and 5,800 MW of electric generation capacity.

Dan Weekley, Dominion's vice president and general manager of Southern pipeline operations, told attendees at an energy conference in September that "everybody knows" the $5 billion pipeline — currently slated to run for 600 miles through West Virginia and Virginia before terminating near Lumberton, North Carolina — is not going to stop there.

Read more on Dominion's plans here:

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