ONEOK Announces Permian-to-Gulf Coast Region Joint Venture Natural Gas Pipeline
ONEOK (NYSE: OKE) has announced a significant joint venture to construct the Eiger Express Pipeline, a major natural gas transportation infrastructure project. The 450-mile, 42-inch pipeline will transport 2.5 billion cubic feet per day of natural gas from the Permian Basin to the Gulf Coast region.
The project is backed by 10+ year firm transportation agreements and involves multiple partners, with ONEOK holding a 25.5% total ownership interest. The pipeline will connect to processing facilities and deliver to both the Katy area near Houston and the Corpus Christi market. WhiteWater will manage construction and operations, with completion expected in mid-2028.
ONEOK (NYSE: OKE) ha annunciato una importante joint venture per la costruzione della Eiger Express Pipeline, un grande progetto di infrastruttura per il trasporto di gas naturale. Il gasdotto, lungo 450 miglia e con diametro di 42 pollici, trasporterà 2,5 miliardi di piedi cubi al giorno di gas naturale dal Permian Basin verso la regione della Costa del Golfo.
Il progetto è supportato da accordi di trasporto a tempo determinato superiori a 10 anni e coinvolge più partner, con ONEOK che detiene una partecipazione totale del 25,5%. Il gasdotto si collegherà a impianti di trattamento e rifornirà sia l’area di Katy, vicino a Houston, sia il mercato di Corpus Christi. WhiteWater gestirà la costruzione e le operazioni, con completamento previsto per la metà del 2028.
ONEOK (NYSE: OKE) ha anunciado una importante empresa conjunta para construir la Eiger Express Pipeline, un gran proyecto de infraestructura para el transporte de gas natural. El gasoducto de 450 millas y 42 pulgadas de diámetro transportará 2,5 mil millones de pies cúbicos por día de gas natural desde la Cuenca Pérmica hasta la región de la Costa del Golfo.
El proyecto cuenta con el respaldo de acuerdos firmes de transporte por más de 10 años e involucra a varios socios, con ONEOK ostentando una participación total del 25,5%. El gasoducto se conectará a instalaciones de procesamiento y suministrará tanto al área de Katy, cerca de Houston, como al mercado de Corpus Christi. WhiteWater gestionará la construcción y las operaciones, con finalización prevista para la mitad de 2028.
ONEOK (NYSE: OKE)가 Eiger Express Pipeline 건설을 위한 대규모 합작 투자를 발표했습니다. 이 자연가스 운송 인프라 프로젝트는 총 450마일, 42인치 파이프라인으로 일일 25억 입방피트(2.5 billion cubic feet)의 천연가스를 퍼미안 분지에서 걸프 코스트 지역까지 운송할 예정입니다.
이 프로젝트는 10년 이상 확정 운송 계약으로 뒷받침되며 여러 파트너가 참여하고, ONEOK는 총 지분 25.5%를 보유합니다. 파이프라인은 처리 시설과 연결되어 휴스턴 인근 케이티(Katy) 지역과 코퍼스크리스티(Corpus Christi) 시장에 공급할 예정입니다. WhiteWater가 건설과 운영을 관리하며 완료는 2028년 중반으로 예상됩니다.
ONEOK (NYSE: OKE) a annoncé une importante coentreprise pour la construction de la Eiger Express Pipeline, un vaste projet d'infrastructure de transport de gaz naturel. Le pipeline de 450 miles et de 42 pouces de diamètre transportera 2,5 milliards de pieds cubes par jour de gaz naturel du bassin permien vers la région de la côte du Golfe.
Le projet est soutenu par des accords fermes de transport de plus de 10 ans et implique plusieurs partenaires, ONEOK détenant une participation totale de 25,5 %. Le pipeline se raccordera à des installations de traitement et alimentera à la fois la zone de Katy, près de Houston, et le marché de Corpus Christi. WhiteWater assurera la construction et l'exploitation, l'achèvement étant prévu pour la mi-2028.
ONEOK (NYSE: OKE) hat ein bedeutendes Joint Venture zur Errichtung der Eiger Express Pipeline angekündigt, ein großes Projekt zur Transportinfrastruktur für Erdgas. Die 450 Meilen lange, 42 Zoll durchmessende Pipeline wird 2,5 Milliarden Kubikfuß pro Tag Erdgas vom Permian Basin an die Golfküste transportieren.
Das Projekt wird durch mehr als 10 Jahre laufende feste Transportverträge abgesichert und umfasst mehrere Partner, wobei ONEOK einen gesamten Beteiligungsanteil von 25,5 % hält. Die Pipeline wird an Verarbeitungsanlagen angeschlossen und sowohl das Gebiet um Katy nahe Houston als auch den Markt in Corpus Christi beliefern. WhiteWater wird Bau und Betrieb übernehmen; die Fertigstellung ist für Mitte 2028 geplant.
- Strategic 25.5% ownership in a major infrastructure project serving growing Permian Basin production
- Long-term revenue stability through 10+ year firm transportation agreements
- Pipeline capacity of 2.5 Bcf/d addresses increasing demand for LNG exports and electricity generation
- Strategic positioning to capture growing natural gas demand in Gulf Coast markets
- Significant wait time until project completion (mid-2028)
- Project subject to regulatory approvals and potential construction delays
- Large-scale infrastructure project carries execution and cost overrun risks
Insights
ONEOK's 25.5% stake in new Permian-to-Gulf pipeline enhances long-term revenue stability with 10+ year contracts.
ONEOK has announced a strategic joint venture to develop the Eiger Express Pipeline, securing a 25.5% ownership interest in this critical infrastructure project. The 450-mile, 42-inch pipeline will transport up to 2.5 billion cubic feet per day of natural gas from the productive Permian Basin to key Gulf Coast markets near Houston and Corpus Christi.
This investment represents a significant strategic advantage for ONEOK in the midstream sector. The pipeline addresses a critical bottleneck in the Permian Basin, where production continues to grow but takeaway capacity has been constrained. By connecting Permian production directly to both domestic industrial consumers and LNG export terminals, ONEOK is positioning itself at a crucial intersection of supply and demand.
The business model appears robust, with the project already securing firm transportation agreements with contract terms of 10+ years, providing predictable cash flow visibility through at least 2038. This long-term contracted capacity significantly reduces volume risk and ensures steady returns regardless of commodity price fluctuations.
While the project won't be completed until mid-2028, this pipeline represents a calculated bet on continued Permian production growth and increasing natural gas demand, particularly from LNG export facilities along the Gulf Coast. The partnership structure with WhiteWater, MPLX, and Enbridge spreads construction and operational risk while maintaining significant economic interest for ONEOK.
Eiger Express Pipeline to Provide Natural Gas Transportation Solution for Growing Permian Basin Production
The approximately 450-mile, 42-inch Eiger Express Pipeline is designed to transport up to approximately 2.5 billion cubic feet per day (Bcf/d) of natural gas from the Permian Basin in
The Eiger Express Pipeline joint venture is owned
"This important infrastructure project is needed to provide additional transportation capacity out of the highly productive Permian Basin," said Pierce H. Norton II, ONEOK president and chief executive officer. "This pipeline's strategic location offers connectivity to growing natural gas demand markets, helping to meet the need for increasing electricity generation and international demand for liquified natural gas (LNG) exports."
The pipeline is supported by firm transportation agreements with contract terms of 10 years or longer. WhiteWater will construct and operate the pipeline, which is expected to be completed in mid-2028, pending receipt of customary regulatory and other approvals.
At ONEOK (NYSE: OKE), we deliver energy products and services vital to an advancing world. We are a leading midstream operator that provides gathering, processing, fractionation, transportation, storage and marine export services. Through our approximately 60,000-mile pipeline network, we transport the natural gas, natural gas liquids (NGLs), refined products and crude oil that help meet domestic and international energy demand, contribute to energy security and provide safe, reliable and responsible energy solutions needed today and into the future. As one of the largest integrated energy infrastructure companies in
ONEOK is an S&P 500 company headquartered in
For information about ONEOK, visit the website: www.oneok.com. For the latest news about ONEOK, find us on LinkedIn, Facebook, X and Instagram.
About the Matterhorn Joint Venture:
The Matterhorn JV is owned by WhiteWater (
About WhiteWater:
WhiteWater is an
About MPLX LP:
MPLX is a diversified, large-cap master limited partnership that owns and operates midstream energy infrastructure and logistics assets and provides fuels distribution services. MPLX's assets include a network of crude oil and refined product pipelines; an inland marine business; light-product terminals; storage caverns; refinery tanks, docks, loading racks, and associated piping; and crude and light-product marine terminals. MPLX also owns crude oil and natural gas gathering systems and pipelines as well as natural gas and NGL processing and fractionation facilities in key
About Enbridge Inc.:
At Enbridge, we safely connect millions of people to the energy they rely on every day, fueling quality of life through our North American natural gas, oil and renewable power networks and our growing European offshore wind portfolio. We're investing in modern energy delivery infrastructure to sustain access to secure, affordable energy and building on more than a century of operating conventional energy infrastructure and two decades of experience in renewable power to advance new technologies including hydrogen, renewable natural gas and carbon capture and storage. Headquartered in
Forward-Looking Statements:
Some of the statements contained and incorporated in this news release are forward-looking statements as defined under federal securities laws. The forward-looking statements relate to our and the Matterhorn JV's and Eiger Express Pipeline joint venture's anticipated financial performance (including projected capital expenditures and cash flow), liquidity, management's plans and objectives for our future growth projects (including dates for expected completion of growth projects) and other future operations, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under federal securities laws and other applicable laws.
Forward-looking statements include the items identified in the preceding paragraph, the information concerning possible or assumed future results of our operations and other statements contained or incorporated in this news release identified by words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "guidance," "intend," "may," "might," "outlook," "plan," "potential," "project," "scheduled," "should," "will," "would" and other words and terms of similar meaning.
One should not place undue reliance on forward-looking statements. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements, including, without limitation, ONEOK being unable to achieve the anticipated benefits of the transaction. Those factors may affect our operations, markets, products, services and prices. These and other risks are described in greater detail in Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K and in the other filings that we make with the Securities and Exchange Commission (SEC), which are available on the SEC's website at www.sec.gov. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Any such forward-looking statement speaks only as of the date on which such statement is made, and, other than as required under securities laws, we undertake no obligation to update publicly any forward-looking statement whether as a result of new information, subsequent events or change in circumstances, expectations or otherwise.
Analyst Contact: | Megan Patterson |
918-561-5325 | |
Media Contact: | Alicia Buffer |
918-861-3749 |
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SOURCE Oneok, Inc.
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