ONEOK to Acquire Easton's NGL Pipeline Network

New fractionation plants, steam crackers and export facilities are being built along the Gulf Coast, all spurred by rising U.S. production of natural gas liquids. This incremental NGL output and these new projects are putting serious pressure on existing NGL pipeline and storage infrastructure, and prodding the development of new salt-cavern storage capacity for mixed NGLs, NGL purity products, and ethylene and other olefins. Also, new, expanded and repurposed pipelines to enhance NGL-related flows throughout the region are in the works. Today, we continue our series on NGL storage facilities along the Gulf Coast with a look at Easton Energy Services’ plans for more underground storage capacity in Markham, TX, and new NGL and olefin pipelines.

Through a pair of newly announced, multibillion-dollar acquisitions, ONEOK is following up on its game-changing purchase of Magellan Midstream Partners by gaining additional scale, significantly increasing its role in NGLs and adding a huge crude oil gathering system in the Permian. The new deals are designed in large part to help ONEOK “feed and fill” its gas processing plants, takeaway pipelines and fractionators. In today’s RBN blog, we’ll discuss the details and implications of ONEOK’s newly announced plan to acquire EnLink Midstream and Medallion Midstream. 

Crude-oil-focused drilling and completion in the Permian Basin is generating fast-increasing volumes of associated gas — and creating opportunities for midstream companies that provide “wellhead-to-water” services for natural gas and NGLs. ONEOK has become a much bigger player in this space via several transformational acquisitions and MPLX has been making moves of its own. (The companies also are working together on a new LPG export terminal — and more.) In today’s RBN blog, we continue our review of Permian-to-Gulf midstreamers’ expansion plans with a look at what ONEOK and MPLX are up to.