ONEOK (OKE) plans to expand its NGL pipeline in the Permian, one of several moves the company has taken to strengthen its position in the basin. East Daley Analytics sees several developments aligning around an inflection point in 2027-28, when OKE can pivot to exports.
On its 3Q26 earnings call, ONEOK announced a 245 Mb/d NGL pipeline expansion in the Delaware, presumably to its West Texas NGL system. The project, expected online in 3Q27, will expand OKE’s ability to compete for third-party NGL volumes in the basin.
OKE said the expansion would extend the NGL system into New Mexico, providing access for additional third-party processing plants and producers in the northern Delaware. Management confirmed that the project has already secured commitments from processors and producers while retaining additional capacity to compete for future supply.
The expansion doesn’t come as a surprise; it is one opportunity East Daley identified in September 2024 following OKE’s acquisition of EnLink Midstream. At the time, we estimated that ~150–200 Mb/d of EnLink’s Permian NGL volumes would become uncontracted within three to four years, creating an opportunity for OKE to poach barrels from competitors in 2027–28. We estimated that around half of those barrels were already flowing through ONEOK’s system, leaving opportunities to redirect additional volumes onto its West Texas NGL pipeline when contracts expire.
ONEOK’s recent acquisition of Brazos Midstream’s Midland assets further expands its processing footprint and potential NGL supply in the Permian. Meanwhile, the company reported NGL throughput volumes from the Gulf Coast/Permian region grew 16% in 3Q26, reflecting continued expansion across its NGL assets.
These developments align with ONEOK’s LPG export terminal joint venture with MPLX in Texas City, expected to begin operations in early 2028. The terminal will provide 400 Mb/d of export capacity, with 200 Mb/d reserved for ONEOK customers, creating an additional outlet for LPG volumes moving through its system.
Bottom Line: The timing of the NGL pipeline expansion positions ONEOK to capitalize on growing Permian NGL production heading into 2028. The Delaware expansion opens access to more third-party supply, while potential EnLink contract expirations and the Brazos acquisition provide opportunities for volume growth. Together with rising NGL throughput, the Texas City terminal marks ONEOK’s entry into the Gulf Coast LPG export market, extending its NGL value chain beyond gathering, transportation and fractionation into downstream export operations. – Sam Chen Tickers: MPLX, OKE.
Data Center Headwinds – Could They Ripple Through Energy Infrastructure?
Data centers are driving expectations for major new power generation projects — but what if projects are delayed? The effects could reach far beyond the data center sector.
Join East Daley on Wednesday, Nov. 18 at 10 am MT for a look at how data center headwinds and power generation needs could reshape energy infrastructure and production.
We’ll explore:
- Power demand and project timing: What could delay data center buildouts, and would that affect expected demand for new generation?
- Natural gas infrastructure: Could delays put natural gas projects at risk where data centers and power utilities are the main downstream customers — especially projects already at FID or still in wait?
- Cross-commodity spillovers: If gas demand growth is pushed out, what does that mean for midstream crude and NGL project growth — and for overall hydrocarbon production?
Delays in data center and power project development could ripple through the infrastructure pipeline, changing the timing and scale of investment across multiple commodity markets.
Reserve your spot now to join the discussion.
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