US midstream infrastructure group Oneok Partners said its new gas processing facility in eastern McKenzie County, North Dakota, is operational, providing more takeaway capacity from the Bakken shale region.
The 100mn cf/d (2.8mn m³ /d) Garden Creek II plant is part of the company's plan to boost gas processing capacity in the Williston basin to about 1.1 Bcf/d by 2016, as natural gas production in the region continues to grow.
The company is planning to spend about $4bn through 2016 for growth projects in North Dakota.
Oneok's processing capacity in the region is currently more than 500mn cf/d, five times the capacity in the region in 2010, said chief executive Terry Spencer.
The increased processing capacity will lead to a reduction of natural gas flaring, he said.
North Dakota gas output increased in June to an all-time high of about 1.25 Bcf/d, up by 5pc from May, the state's Pipeline Authority said. A large amount of gas production in the Bakken is associated with crude output. About 27pc of the gas produced in the state in June was flared because of a lack of processing plants and pipeline takeaway capacity.
The state is phasing in new rules to reduce flaring by limiting crude production for producers that do not meet requirements to capture natural gas.
An initial set of rules will require producers to capture 74pc of all produced gas by 1 October. The state's goal is to cut flaring to 26pc in the fourth quarter of this year, to 23pc by first quarter 2015, to 15pc by first quarter 2016 and to 5-10pc by the end of 2020.
Natural gas output this month from the Bakken shale region, which includes 20 counties in North Dakota and Montana, should reach 1.325 Bcf/d as oil wells continue to produce large volumes of gas, according to the US Energy Information Administration (EIA).
Oneok said that it plans to add another 100mn cf/d of processing capacity in the region in the fourth quarter of this year when it completes the Garden Creek III plant as well as expansions and upgrades to existing gas gathering and compression infrastructure. In addition, Oneok plans to complete the 200mn cf/d Lonesome Creek plant in the fourth quarter of 2015 and the 200mn cf/d Demicks Lake plant in the third quarter of 2016.
Oneok will also build additional natural gas compression to boost gas processing capacity at its Garden Creek and Stateline plants in the Williston by a total of 100mn cf/d.
emb/tdf
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