ONEOK to build extension to Overland pipeline

Natural gas pipeline operator ONEOK Partners L.P. said it will build a natural gas liquids pipeline extension to connect the Denver-Julesburg Basin in Colorado with the Overland Pass Pipeline now being built.

After the market closed Wednesday, the company said the project is expected to cost between $70 million and $80 million.

The 125-mile pipeline extension will transport as much as 55,000 barrels a day of raw natural gas liquids to the 760-mill Overland Pass Pipeline, the company said. ONEOK added that construction of the pipeline extension is now under way and is expected to begin operating in early 2009.

The Overland Pass Pipeline will connect processing plants in southwestern Wyoming to Conway, Kansas. It is being built by Overland Pass Pipeline LLC, a joint venture between a unit of ONEOK and a subsidiary of Williams Cos. Inc.