EnLink Midstream announces solution to move NGLs from central Oklahoma to Gulf Coast
DALLAS — The EnLink Midstream companies, EnLink Midstream Partners, LP and EnLink Midstream, LLC announced that a subsidiary of EnLink entered into a long-term, fee-based agreement with a subsidiary of ONEOK Inc. to move NGLs from EnLink's premier Central Oklahoma position to EnLink's Cajun-Sibon platform and the Mont Belvieu trading and storage hub.
NGL volumes from EnLink's Chisholm processing complex will directly connect to EnLink's Louisiana franchise, allowing EnLink to preferentially fill its Cajun-Sibon platform and providing new access to the growing Gulf Coast NGL hub. EnLink's Central Oklahoma NGLs will be transported through ONEOK's Arbuckle and Sterling systems, which ONEOK plans to expand by the end of 2018 to handle the incremental volumes. The flexibility built into the agreement benefits EnLink's long-term strategic growth plan by allowing EnLink to retain control of volumes and optimize current operations and future opportunities. The deal is immediately accretive to EnLink's earnings and requires no incremental capital expenditures.
"This arrangement provides a solution to move NGLs from EnLink's premier position in prolific Central Oklahoma to our demand-driven Louisiana system and other Gulf Coast demand centers, through a long-term, attractive agreement with ONEOK," said Barry E. Davis, EnLink Chairman and Chief Executive Officer. "The agreement gives us physical connections from Chisholm directly to Cajun-Sibon via the ONEOK systems, which will enhance the performance and reliability of our platform. We evaluated many options to move NGLs to the Gulf Coast, including building our own pipeline, and this deal was the most economic, secure, and flexible for EnLink and our customers."
This arrangement provides an immediate NGL transportation solution that allows EnLink to appropriately plan for processing capacity expansions to match producer volume growth. Volume commitments in this agreement scale only as EnLink adds processing capacity.
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At October’s HPI Forecast Breakfast for our sister publication, <i>Hydrocarbon Processing</i>, I shared <i>Gas Processing</i>’s forecast on change in the LNG industry.
In one of the toughest markets in the history of gas compression, we are challenged to deliver more with less.
The New LNG Imperative
The shale gas boom established the US as the world’s leading natural gas producer and is responsible for billions of dollars of investments in the US gas processing industry. Since 2012, the US has witnessed unprecedented growth in new gas processing capacity and infrastructure. This rise is due to greater production of domestic shale gas, which is providing cheap, available feedstock to fuel the domestic gas processing, LNG and petrochemical industries. New gas processing projects include the construction of billions of cubic feet per day of new cryogenic and gas processing capacity, NGL fractionators, multi-billion-dollar pipeline infrastructure projects, and the development of millions of tons per year of new LNG export terminal construction. Attend this webcast to hear from Lee Nichols, Editor/Associate Publisher, Hydrocarbon Processing, Scott Allgood, Director-Data Services, Energy Web Atlas and Peregrine Bush, Senior Cartographic Editor, Petroleum Economist as they discuss the future of LNG and the application of Energy Web Atlas, a web-based GIS platform which allows users to track real-time information for every LNG project.
November 29, 2017 10am CST
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