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Home News Energy & Environment
Photo from ONEOK

Photo from ONEOK

ONEOK announces $385-million rebuild of natural gas fractionator hit by explosion

Hicham Raache by Hicham Raache
August 19, 2024
in Energy & Environment, News
Reading Time: 2 mins read
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MEDFORD, Okla. (OBV) – ONEOK is starting anew in the Medford area, recently announcing a plan to rebuild the massive natural gas liquids fractionator that was badly damaged in a fiery explosion two years ago.

The 210,000-barrels per day natural gas liquids fractionation facility was consumed by flames that were ignited in an explosion in July 2022, just outside of Medford.

ONEOK will rebuild the facility to meet its expanding need for fractionation capacity, according to Paul Parmley, director of digital communications for ONEOK.

Company officials estimate the rebuild will cost $385 million.

The rebuild is envisioned as a two-phase project.

The first phase is expected to be finished in the fourth quarter of 2026 and the second phase in the first quarter of 2027, according to Parmley.

Rebuilding the facility is the lowest cost-per-barrel expansion option for ONEOK to help address the expected increase in NGL production.

Also, its Mid-Continent location further increases the reliability and resiliency of ONEOK’s fractionation capabilities and will allow its integrated system to accommodate volume growth from the Permian, Bakken and Mid-Continent natural gas regions.

ONEOK reached an agreement with its insurers in January 2023 to pay $930 million to settle all claims for physical damage and business interruption related to the 2022 explosion.

There were no reported injuries in the explosion.

Tags: ExplosionFireFractionation FacilityFractionatorMedfordMid-ContinentNatural Gas LiquidsNGLOklahomaONEOKPermianRebuilding
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