ONEOK Partners Signs Definitive NGL Fractionation Services Agreement With a Subsidiary of Targa Resources Partners
TULSA, Okla., Feb. 16 /PRNewswire-FirstCall/ -- ONEOK Partners, L.P. (NYSE: OKS) announced today that it has signed a definitive 10-year firm space fractionation agreement with Cedar Bayou Fractionators, L.P., a majority-owned subsidiary of Targa Resources Partners LP (NYSE: NGLS), for fractionation services at the subsidiary's natural gas liquids fractionation facility at Mont Belvieu, Texas.
Under terms of the agreement, ONEOK Partners has contracted for 60,000 barrels per day of fractionation services at the Cedar Bayou Fractionators, L.P. facility, which is currently being expanded to 275,000 barrels per day from 215,000 per day and is expected to be operational during the second quarter of 2011.
"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," said Terry K. Spencer, chief operating officer of ONEOK Partners.
As part of the expansion, Targa Resources Partners LP and ONEOK Partners plan to construct interconnection facilities to link the Cedar Bayou Fractionators, L.P. 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 percent interest in its MB-1 fractionator in Mont Belvieu, ONEOK Partners also owns NGL fractionators in Medford, Okla.; in Bushton and Hutchinson, Kan.; and a 10 percent interest in a fractionator in Conway, Kan. ONEOK Partners' net capacity in these fractionators is approximately 550,000 barrels per day.
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 42.9 percent of the overall partnership interest, prior to the offering announced in this news release. 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.
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SOURCE ONEOK Partners, L.P.
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