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ONEOK outlines midstream operations, Bushton processing and planned Scott City–Denver pipeline
Summary
Michael Gillespie, Director of Government Relations for ONEOK, described the company’s midstream footprint, its 2023 acquisition of Magellan, Kansas processing facilities (Bushton), Elk Creek liquids pipeline throughput estimates, security and safety practices, and plans to build a Scott City-to-Denver refined-products pipeline.
Michael Gillespie, director of government relations for ONEOK, told the Kansas Senate Utilities Committee the company operates pipelines and processing that move natural gas liquids, refined products and crude — and that recent acquisitions and planned projects are intended to increase refined-product and jet-fuel deliveries to regional markets.
Gillespie described ONEOK as a midstream company that does not perform retail distribution: “ONEOK does not have any distribution, so we're not a utility,” he told the committee. He said the company operates more than 50,000 miles of pipeline in 18 states, with about 7,000 miles and roughly 320 employees in Kansas, including fractionation and processing at the Bushton facility near Ellsworth and Hutchinson.
Gillespie described the Elk Creek pipeline as a major natural-gas-liquids artery that moves roughly 300,000–400,000 barrels per day into Kansas fractionation and storage and said those products are processed at Bushton into propane, butane, ethane and natural gasoline for downstream customers.
He discussed the company’s recent acquisition of Magellan Pipeline Company (completed in September 2023), plans to acquire Medallion Midstream and EnLink Midstream, and upgrades at facilities in El Dorado and Great Bend that will be used to support refined-product movements and storage. Gillespie said those changes support projects to increase gasoline, diesel and jet-fuel deliveries into the Denver market and to Kansas refineries.
Gillespie described standard midstream safety and integrity practices including inline inspections (“smart pigs”), weld inspections, 24/7 control-center monitoring and regular engagement with first responders. He said the company works with federal and local law enforcement on cybersecurity and physical security and that it conducts exercises and training for emergency responders.
On customer and production issues, Gillespie said flaring near some wells is often a result of insufficient nearby gathering infrastructure, not necessarily processing quality. He also said permitting, right-of-way and landowner easement acquisition add time to long-haul pipeline projects.
Gillespie said ONEOK has begun planning a pipeline from Scott City, Kansas, to Denver to move more gasoline, diesel and jet fuel into the Denver area and to support refinery and airport growth in the region. He described pipelines as an efficient alternative to shifting large volumes of product to truck or rail.
Gillespie stood for committee questions on security, flaring, pipeline capacity and the relationship between midstream buildout and siting new gas-fired electric generation.
