Elk Creek Pipeline: Proposed Natural Gas Line Would Span 4 States

CHEYENNE, WY — ONEOK, Inc. has proposed building a $1.4 billion pipeline that would move natural gas liquids from eastern Montana, through eastern Wyoming, northeastern Colorado and down into central Kansas to connect to the company's existing natural gas facilities. The nearly 900-mile Elk Creek Pipeline, expected to be finished by the end of next year, would be able to move up to 240,000 barrels of "unfractionated" natural gas liquid per day from near ONEOK's Riverview terminal in Montana to Bushton, Kansas, the company said.

The pipeline could be expanded to handle 400,000 barrels a day with more pump facilities, the company, based in Tulsa, Oklahoma, said in a release.

Terry Spencer, president and chief executive officer of ONEOK, said the existing Bakken and Overland Pass pipelines are operating at full capacity and that more capacity is needed to meet demand from producers, who Spencer said were increasing production and were required to meet natural gas capture targets in the Williston Basin.

“The Elk Creek Pipeline will strengthen ONEOK’s position in the high-production areas of the Bakken, Powder River and Denver-Julesburg regions and also provide additional reliability and redundancy on our NGL system," Spencer said.

A map of the proposed pipeline shows it spans three states north-south — running parallel to the Bakken NGL Pipeline — before turning southeast to run along the Overland Pass Pipeline.

The plan still needs to be approved by federal, state and local officials.

The Elk Creek Pipeline is anchored by long-term contracts with terms ranging from 10 to 15 years, the company said. It will be mainly supported by minimum volume commitments.

ONEOK announces plans to increase natural gas liquids takeaway capacity out of the Rocky Mountain region: https://t.co/cT4rlxoCiT Map of the proposed pipeline: https://t.co/6zDkwazIbQ pic.twitter.com/WTfEK98aAe
— ONEOK (@ONEOK) January 4, 2018

You can read ONEOK's release here.

Photo credit: Dan Hampton, Patch