ONEOK bets $480m on pipeline expansion project to boost Denver’s fuel supply

ONEOK, Inc. (NYSE: OKE) has unveiled plans for a major expansion of its pipeline network, aimed at enhancing connectivity between Mid-Continent and Gulf Coast refined products supply and the greater Denver area. The $480 million project involves the construction of a new 230-mile pipeline from Scott City, Kansas, to Denver International Airport (DIA), alongside upgrades to existing pump stations. This expansion is designed to address the growing demand for refined products and renewable fuels in the region.

The proposed pipeline will be 16 inches in diameter and is expected to boost the total system capacity by 35,000 barrels per day (bpd). This new infrastructure will provide additional expansion capabilities to meet future demands. Construction is projected to be completed by mid-2026. The project, which follows a successful open season earlier this year, is fully subscribed under long-term contracts, indicating strong market support and commitment.

Pierce H. Norton II, President and Chief Executive Officer of ONEOK, emphasized the company’s strategic position to support the growing energy needs of the Denver area. Norton highlighted that the expanded pipeline will enhance capacity for various transportation fuels, including aviation fuels and sustainable aviation fuel, which are increasingly required due to the expansion of Denver International Airport. He underscored that the project represents a significant growth opportunity following the recent acquisition of ONEOK’s refined products and crude oil businesses.

ONEOK’s expansion project aligns with the company’s broader strategic goals of addressing rising energy demands while upholding its commitment to safe and reliable operations. As a leading midstream operator, ONEOK is involved in the gathering, processing, fractionation, transportation, and storage of energy products. With a pipeline network exceeding 50,000 miles, ONEOK plays a critical role in transporting natural gas, natural gas liquids (NGLs), refined products, and crude oil across North America, thereby contributing to both domestic and international energy security.

The company’s expansion project not only aims to improve energy delivery and infrastructure but also supports its mission to provide responsible energy solutions in a rapidly advancing world. ONEOK’s continued investment in infrastructure reflects its dedication to meeting current and future energy needs while maintaining operational excellence.