ONEOK Inc has cleared a key regulatory milestone for its Bighorn Gas Processing Plant in the Delaware Basin, with air permit approval now complete at the state level. The approval supports ONEOK’s recently announced final investment decision (FID) and advances the project from planning into execution.
Air Permit Approval (TCEQ)
The Texas Commission on Environmental Quality (TCEQ) approved the air permit notification for the Bighorn facility, confirming regulatory clearance for construction and operation:
- Project #: 402432
- Project Technical Name: BIGHORN
- Permit #: 182538
- Permit Type: Standard Permit (STDPMT)
- Action Type: NOTIFYNEW
- Status: COMPLETE
- Received / Completed Date: December 19, 2025
Permittee: Delaware Processing LLC
- CN: CN605469956
- RN: RN112341466
Location: Loving County, Texas (Region 07 – Midland), near Mentone
The project was authorized under Rule 6002 – Oil and Gas Production Facilities (non-Rule 2012), indicating it qualifies under a standard permit framework rather than a site-specific NSR.
Loving County drilling activity provides strong demand signal
Year-to-date data highlights the scale of upstream activity underpinning new midstream capacity in the Delaware Basin:
- Total wells drilled in Loving County (YTD): 409
Top operators by well count (YTD):
- OXY USA Inc — 145 wells
- Petro-Hunt, L.L.C. — 36 wells
- ConocoPhillips Company — 35 wells
- EOG Resources, Inc. — 29 wells
- Admiral Permian Resources — 26 wells
This concentration of drilling activity—particularly among large, gas-weighted operators—reinforces the need for additional processing and treating capacity, including facilities capable of handling high-CO₂ gas streams.
Project context
The Bighorn plant is designed for 300 MMcf/d of natural gas processing capacity and is expected to enter service in mid-2027. Once operational, it will increase ONEOK’s Delaware Basin processing capacity to approximately 1.1 Bcf/d, up from roughly 700 MMcf/d today.
Why it matters
With air permitting complete and FID in hand, Bighorn represents a clear signal that Permian midstream build-out remains active, aligned with sustained drilling in Loving County and the broader Delaware Basin. For operators, service companies, and equipment vendors, the project marks the shift from regulatory approval to execution—anchoring the next phase of gas infrastructure expansion in one of North America’s most active shale corridors.
