The $480 million Denver project adds 35,000 barrels per day of refined-products capacity as ONEOK maintains a $2.7 billion to $3.2 billion 2026 capital program and advances infrastructure milestones through 2028.

Published by Allstream Insiders.

Allstream Insiders Summary

ONEOK has mechanically completed its Greater Denver refined-products pipeline expansion, marking a major construction milestone for a $480 million project designed to add 35,000 barrels per day of system capacity.

The expansion includes a new 230-mile, 16-inch pipeline from Scott City, Kansas, to Denver International Airport, along with new or upgraded pump stations on ONEOK’s existing refined-products system. The project is fully subscribed under long-term contracts and is designed to improve access to transportation fuels, including aviation fuel, across the Greater Denver market.

ONEOK’s August 3 update also kept the company’s 2026 capital-expenditure program at approximately $2.7 billion to $3.2 billion. ONEOK recorded $613 million of capital expenditures during the second quarter and $1.477 billion during the first six months of 2026, including maintenance capital.

The remaining project schedule includes the two-phase 210,000-barrel-per-day Medford fractionator rebuild in Oklahoma, 110 million cubic feet per day of Delaware Basin processing expansions, the 300 million-cubic-feet-per-day Bighorn processing plant, and the 400,000-barrel-per-day Texas City LPG export terminal with its related Mont Belvieu pipeline.

ONEOK is also participating in the Eiger Express Pipeline, a Permian-to-Katy natural gas project designed for up to 3.7 billion cubic feet per day of capacity and expected to be completed in mid-2028, subject to customary approvals.

Denver Expansion Reaches Mechanical Completion

ONEOK reported the Greater Denver expansion as mechanically complete in early August 2026. Mechanical completion indicates that the defined construction and installation work has reached a major turnover milestone; it should not be read as a separate confirmation of commercial service unless ONEOK announces that operating milestone.

The project connects ONEOK’s Mid-Continent and Gulf Coast refined-products supply network with the Greater Denver market. Its principal scope includes:

• A new 230-mile, 16-inch pipeline from Scott City, Kansas, to Denver International Airport.
• New or upgraded pump stations along the existing refined-products system.
• 35,000 barrels per day of additional system capacity, with provisions for further expansion.
• Long-term transportation commitments covering the new capacity.

ONEOK announced the project in July 2024 with an estimated cost of approximately $480 million. The company said the added connectivity is intended to support demand for transportation fuels, including aviation fuel and sustainable aviation fuel associated with the continued expansion of Denver International Airport.

ONEOK Maintains a $2.7 Billion to $3.2 Billion 2026 Capital Program

ONEOK’s full-year capital range remains $2.7 billion to $3.2 billion. The program includes growth projects, maintenance capital, well connections across its operating basins, plant connections and integration-related projects.

The $613 million recorded during the second quarter and $1.477 billion recorded during the first half are companywide capital expenditures, including maintenance. They should not be assigned to a specific pipeline, plant or terminal unless ONEOK provides a project-level breakdown.

The following tracker combines the current project milestones in ONEOK’s second-quarter presentation with project specifications from the company’s supporting announcements and June 2026 investor update.

Medford Fractionator Rebuild Carries Two Startup Windows

ONEOK is rebuilding 210,000 barrels per day of fractionation capacity at Medford, Oklahoma, through two scheduled phases.

Phase I represents 100,000 barrels per day and is expected to be completed in the fourth quarter of 2026. Phase II adds the remaining 110,000 barrels per day and is expected to be completed in the first quarter of 2027.

The separate completion windows matter for contractors and suppliers because the program is not presented as one simultaneous startup. The phased schedule could support distinct periods of mechanical completion, electrical and instrumentation work, testing, commissioning and turnover as each portion of the rebuilt facility advances.

Permian Processing Work Advances in the Delaware Basin

ONEOK’s second-quarter presentation identifies two active Delaware Basin processing programs following the completion of a separate Midland Basin plant relocation.

The company expects 110 million cubic feet per day of Delaware Basin processing-plant expansion projects to be completed in the third quarter of 2026. It is also advancing the Bighorn processing plant, a new 300 million-cubic-feet-per-day facility scheduled for completion in mid-2027.

ONEOK separately completed the relocation of a 150 million-cubic-feet-per-day processing plant from North Texas to the Midland Basin during the first quarter of 2026. That relocation is a completed milestone and is not part of the remaining Delaware Basin construction schedule.

The active Delaware Basin programs could involve process equipment, compression, piping, electrical systems, instrumentation, automation, civil work and gathering connections as the facilities move toward completion. Those categories describe the types of work commonly associated with the announced plant scopes; they do not represent contractor awards or bid notices.

Texas City Terminal and Mont Belvieu Pipeline Extend ONEOK’s NGL System

ONEOK and MPLX are advancing two related joint ventures designed to connect ONEOK’s Mont Belvieu storage position with a new LPG export terminal at Texas City.

The Texas City Logistics export terminal is designed for 400,000 barrels per day of LPG loading capacity. ONEOK and MPLX each own 50%, with MPLX responsible for construction and operation. The partners estimated the terminal investment at $1.4 billion, or approximately $700 million for each company.

The related MBTC Pipeline will be a new 24-inch pipeline from ONEOK’s Mont Belvieu storage facility to the terminal. ONEOK owns 80% and will construct and operate the pipeline, while MPLX owns the remaining 20%. The partners estimated the pipeline investment at $350 million, including approximately $280 million attributable to ONEOK.

Together, ONEOK’s expected investment in the terminal and pipeline is approximately $1 billion. Both projects carry an expected early-2028 completion. Each partner has reserved 200,000 barrels per day of terminal capacity for its customers.

Eiger Express Targets Permian-to-Katy Natural Gas Capacity

The Eiger Express Pipeline is designed to transport natural gas from Permian Basin processing facilities and pipeline connections to the Katy area near Houston, with reserved capacity for deliveries toward the Corpus Christi market.

The approximately 450-mile, 42-inch pipeline is now designed for up to 3.7 billion cubic feet per day, following an expansion from its original 2.5-billion-cubic-feet-per-day design. ONEOK’s total ownership interest is 25.5%, including its interest through the Matterhorn joint venture. WhiteWater is the project operator and is responsible for construction.

The pipeline is expected to be completed in mid-2028, subject to customary regulatory and other approvals. ONEOK has said the expanded capacity is fully subscribed under long-term transportation agreements.

Natural Gas Systems Face More Than 5 Bcf/d of Potential Power Demand

ONEOK’s second-quarter presentation identifies data centers and electric generation as a developing demand source for its natural gas pipeline systems in Oklahoma, Texas and Louisiana.

The company said it is engaged with more than 40 counterparties representing more than 5 billion cubic feet per day of potential natural gas demand connected with data-center and electric-generation projects.

That figure is a commercial-development signal, not a sanctioned construction backlog. It could lead to pipeline, compression, storage, metering or interconnection projects if counterparties execute contracts and ONEOK completes the necessary commercial, engineering and approval steps.

Allstream Perspective

ONEOK’s August update is most relevant to the industrial supply chain because it establishes a sequence of project milestones across refined products, NGLs, gas processing and long-haul natural gas transportation.

The Denver expansion has reached mechanical completion, while the Medford rebuild and Delaware Basin expansions carry completion dates within the next two quarters. Bighorn moves the processing schedule into 2027, and the Texas City, MBTC and Eiger projects extend the program into 2028.

This sequencing could create demand across pipeline construction, process equipment, pumps, compression, valves, storage and terminal systems, electrical and instrumentation packages, inspection, testing, commissioning and facility turnover. The announced project capacities and schedules provide the evidence for monitoring those markets; specific procurement opportunities still require formal bid, award or contractor disclosures.

ONEOK’s capital range is a companywide program and should not be treated as the combined budget for the projects in the tracker. The strongest project-specific values currently available are the $480 million Denver expansion, the $1.4 billion Texas City terminal, the $350 million MBTC Pipeline, and ONEOK’s approximately $1 billion combined share of the Texas City and MBTC investments.

This article is based on publicly available company disclosures and is provided for general industry information. Forward-looking project schedules, costs and capacities remain subject to change. This article does not constitute investment, legal or procurement advice