On July 9, 2022, a gas fire at one ONEOK gas plant in Medford, Oklahoma, removed hundreds of people from their homes. According to Medford police, “between 800-1000” resident were forced to vacate the area due to the fire.
On Monday, January 9, ONEOK says it has reached an agreement with its insurers to settle claims for physical damage and business interruption from the fire.
“We are pleased to have come to a successful agreement with our insurance carriers that was the result of a collaborative process,” said Pierce H. Norton II, ONEOK president and chief executive officer. “This agreement provides us the certainty of insurance recovery, and shortens the construction period to restore the most efficient fractionation capacity to our integrated system to meet expected growth in NGL supply for petrochemical and export demand.”
According to officials, ONEOK has agreed to settle its claim for complete insurance payments of $930 million, including $100 million received to date. The settlement payment is required to be paid by insurers within 45 days.
With the claim now resolved, the company also announced its plans to build a new 125,000-barrel per day fractionator at its facility in Mont Belvieu, Texas. Once it is completed, the MB-6 facility will improve the company’s total fractionation compacity.
ONEOK says it will continue to operate NGL pipeline assets in Medford along with existing offices for regional operations. In addition, ONEOK is preserving assets for future potential NGL facilities that could be constructed in Medford to enhance its NGL business as the market evolves.
For more information, visit ONEOK’s website.