ONEOK to Build 230-Mile Refined Products Pipeline from Kansas to Denver
(P&GJ) — ONEOK Inc. has announced plans to expand its pipeline capacity connecting Mid-Continent and Gulf Coast refined products supply with the greater Denver area to meet growing demand and increase connectivity with Denver International Airport (DIA).
"This project will provide additional needed capacity for various transportation fuels, including aviation and sustainable aviation fuel to support increasing demand from the expansion of Denver International Airport,” said Pierce H. Norton II, ONEOK president and chief executive officer.
The project includes construction of a new 230-mile, 16-inch diameter pipeline from Scott City, Kansas, to DIA and the addition or upgrading of certain pump stations along the existing refined products pipeline system. Total system capacity will increase by 35,000 barrels per day (bpd) and will have additional expansion capabilities. The project is expected to cost approximately $480 million and be completed in mid-2026.
Following the close of an open season earlier this year, the project is fully subscribed under long-term contracts.
"This announcement is another example of the attractive-return growth opportunities ahead of us following the acquisition of our refined products and crude oil businesses," Norton said.
In May 2024, ONEOK announced a $280 million acquisition of a natural gas liquids (NGL) pipeline system from Easton Energy. This system spans approximately 450 miles around the Houston Ship Channel and will be integrated with ONEOK’s existing NGL, refined products, and crude oil infrastructure. The acquisition is set to enhance connectivity and commercial synergies in the Gulf Coast region.
Last year, ONEOK completed its acquisition of Magellan Midstream Partners in an $18.8 billion deal, expanding its portfolio into refined products and crude oil transportation. This strategic move aimed to create a significant midstream infrastructure player with a diversified revenue stream and improved financial flexibility. The acquisition was expected to drive future earnings growth and shareholder value.
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