ONEOK announces expansion tied to Medford 'incident' settlement

ONEOK said it has expanded liquid natural gas fractionation and pipeline capacity following a $930 million settlement in which hundreds of people evacuated after a gas plant explosion and fire in northern Oklahoma.

The company on Tuesday announced completion of "MB-6," a 125,000-barrel per day (bpd) natural gas liquids (NGL) fractionator in Mont Belvieu, Texas, east of Houston, and "the full looping of the West Texas NGL pipeline system."

Tulsa-based ONEOK said in January 2023 that it had reached an agreement with its insurers to settle all claims for physical damage and business interruption related to what it called "the Medford incident" that occurred in July 2022.

The explosion and fire at the natural gas liquids fractionation facility, located 2 miles south of Medford in north-central Oklahoma, occurred shortly before 2:30 p.m. July 9, 2022.

An evacuation advisory for residents living within 2 miles of the plant was issued July 9. It later was reduced to a 1-mile radius before ending July 12, the Enid News & Eagle reported.

Oklahoma City TV station KFOR, citing Medford police, reported 800 to 1,000 residents were "forced to vacate the area due to the fire." No injuries were reported.

ONEOK, when it announced the settlement in 2023 said, "With the insurance claim now resolved, the company is also announcing plans to construct a new 125,000-barrel per day (bpd) NGL fractionator at its Mont Belvieu, Texas, facility.

"Upon completion, the new fractionator, MB-6, will increase the company's total fractionation capacity in Mont Belvieu to approximately 700,000 bpd and better align ONEOK's fractionation capacity with NGL market demand in the Gulf Coast," the company said in January 2023.

On Tuesday, ONEOK said completion of MB-6 increases the company's fractionation capacity to more than 1 million bpd, "reducing the need for third-party fractionation and enhancing ONEOK's ability to serve growing NGL market demand."

Completion of the "full looping of the west Texas NGL pipeline system expands capacity to 515,000 bpd. Additional pump stations, which are expected to be completed in mid-2025, will further increase system capacity to 740,000 bpd," the company said.

"The completion of these important NGL projects demonstrates our dedication to meeting the needs of our customers by providing reliable midstream solutions," said Pierce H. Norton II, ONEOK president and chief executive officer.

"These strategic expansions provide critical NGL transportation and fractionation capacity, supporting NGL growth across our integrated operations."

ONEOK in its 2023 settlement announcement said it "will continue to operate NGL pipeline assets in Medford along with existing offices for regional operations. In addition, ONEOK is preserving assets for future potential NGL facilities that could be constructed in Medford to enhance its NGL business as the market evolves."

Medford is located about 25 miles west of Blackwell and 15 miles south of the Kansas border in Grant County.