Another U.S. natural gas plant explodes, global supplies may tighten further

May 29, 2024, 11:58 AM

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On July 9, an explosion occurred at the ONEOK LNG diversion facility near Medford, Oklahoma, potentially impacting LNG exports from the Gulf Coast. The cause is under investigation, and rescue efforts are underway. ONEOK, a key midstream service provider, operates extensive natural gas networks and supplies LNG to major export hubs. The incident adds to global supply tensions, especially with ongoing pipeline overhauls.

On the afternoon of July 9, local time, an explosion occurred at the ONEOK LNG diversion facility near Medford, Oklahoma, in the south-central United States, which may have an impact on LNG exports from the Gulf Coast in Texas. At present, the cause of the accident is still under investigation, and the factory personnel are actively carrying out rescue work.

Oneok, Inc. is a leading midstream service provider to the natural gas industry and operator of large LNG systems, headquartered in Tulsa. The company operates a vast natural gas network with pipelines spanning approximately 3,860 kilometers, connecting 130 natural gas fields, six storage centers and 12 interstate transportation systems. At the same time, it also produces hydrocarbons and other products, which are widely used in petrochemical, power generation, fuel and other industries.

In 2020, the blast plant processed 4.87 billion cubic feet (about 138 million cubic meters) of natural gas, according to EIA statistics. While serving domestic demand, it also transports LNG via pipeline in Texas to Mont Belvieu on the Gulf Coast, a major export hub for energy products. However, there is no word yet on the pipeline disruption.

Recently, the main pipeline "North Stream-1" from Russia to Europe will be overhauled from the 11th to the 21st, and the sudden explosion in the free port of the United States is also expected to resume in early October, and the supply tension is pervasive. The explosion in Massachusetts may further tighten global supplies.

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