ONEOK to build natural gas fractionator in Mont Belvieu
January 19, 2023
ONEOK announced this week it plans to build a new 125,000 barrel-per-day natural gas liquids fractionator in Mont Belvieu. On completion the new fractionator, MB-6, will increase the company’s total fractionation capacity in Mont Belvieu to 700,000 barrels per day.
The company made the announcement at the same time it released the news that it has reached an agreement with insurers to settle all claims for physical damage and business interruption related to an explosion and fire at its natural gas plant in Medford, Oklahoma, in July, 2022.
The MB-6 fractionator will produce purity ethane instead of an ethane/propane mix previously produced at the Medford facility.
Construction is expected to be completed in about 24 months at a total cost of about $550 million with a more favorable completion schedule than rebuilding at Medford. The company reported this is because:
• Permitting for the MB-6 facility is complete
• Engineering is substantially complete because of the use of similar engineering designs and purchase orders to other fractionation facilities, MB-5 and MB-4, and
• The company’s ability to efficiently transition the existing construction resources from the MB-5 fractionator.
MB-5 is expected to be completed during the second quarter of 2023.