ONEOK’s Elk Creek NGL Pipeline Achieves Record Growth in 2Q25

ONEOK’s Elk Creek NGL pipeline has made headlines in the energy sector following a significant spike in performance during the second quarter of 2025 (2Q25). As Bakken producers ramped up ethane recovery, the pipeline’s metrics soared, indicating a promising shift in the region’s natural gas liquids (NGL) landscape.

A Sharp Increase in NGL Volumes

Recent filings with the Federal Energy Regulatory Commission (FERC) reveal a remarkable surge in NGL volumes transported through Elk Creek, with an increase of 64 Mb/d quarter-over-quarter (Q-o-Q). This growth far exceeded the expansion of plant-level production, capturing the attention of industry analysts and investors alike.

Data from East Daley Analytics highlights that Bakken NGL output rose by 49 Mb/d, representing an 11% increase, chiefly driven by an impressive 21% spike in ethane recovery. This revival is crucial to understanding how Bakken producers are strategically reallocating their resources to optimize for higher-margin products.

Analyzing Production Dynamics

Interestingly, alongside this jump in overall NGL volumes, there was a notable decline of 14 Mb/d in the volumes transported via OKE’s legacy Bakken pipeline. This scenario gives rise to a near balance of around 63 Mb/d, essentially mirroring the positive uptick in Elk Creek’s performance. This shift signals that producers are prioritizing barrels that flow through Elk Creek. The reasons are clear: the Elk Creek pipeline offers longer-haul tariffs and greater flexibility downstream, enhancing its appeal over legacy options.

Ethane as a Growth Lever

An essential driver for this growth is none other than ethane itself. According to the Purity Product Forecast from East Daley Analytics, around 223 Mb/d of Bakken ethane is currently in a state of rejection, waiting for the right market conditions to be fully utilized. Elk Creek’s recent expansion to 135 Mb/d positions it to capitalize on this unutilized ethane, setting the stage for further growth. The ramp-up observed in 2Q25 suggests we may be witnessing the opening act in tapping into this potent resource pool.

Future Prospects and Infrastructure Enhancements

Looking ahead, the outlook for Elk Creek seems even brighter with the anticipated restart of OKE’s Medford fractionator in Conway. This restart will facilitate the movement of more Bakken NGLs southward on the underutilized Sterling system, eventually reaching Mont Belvieu, a vital hub for NGL trading and processing. Analysts are eager to track how this development will further influence recovery rates and the overall efficiency of the supply chain.

Implications for Investors

For investors, these developments signify an increasingly robust scenario for ONEOK. The rising rates of ethane recovery effectively tighten the flows between Conway and Mont Belvieu, enhancing Elk Creek’s utilization and strengthening OKE’s integrated margin capture. Armed with East Daley’s NGL plant data, stakeholders can closely monitor these dynamics in real time, providing a significant edge in decision-making.

The Bakken Energy Path

East Daley’s innovative Energy Path tool is revolutionizing how market participants track the journey of molecules from wellhead to demand. This platform allows users to gain comprehensive insights across the entire oil and gas value chain. For those invested in the Bakken market, Energy Path presents an invaluable resource to monitor volumes and fees at every stage in the production chain.

Focus on Data Center Demand

An additional opportunity exists within tracking the Data Center Demand Monitor, which serves as a crucial tool for analyzing data center projects and demand across the U.S. With nearly 500 projects being monitored, this resource offers users deep insights into pipeline corridors and future demand forecasts, bolstering strategic planning efforts.

Staying Informed

For those eager to stay updated on the latest trends and insights in the energy sector, subscribing to The Daley Note can provide daily insights on commodity prices, security fluctuations, and research likely to impact markets in the near term.

This combination of rising ethane recovery, pipeline efficiencies, and enhanced monitoring tools paints a promising picture for ONEOK and the Bakken region, signifying not just a momentary spike but potentially a sustainable trajectory of growth in the NGL market.