Bakken Pipeline Gets Final Go-Ahead From Feds
The Dakota Access Pipeline received the regulatory go-ahead from the US Army Corps of Engineers at the end of July, clearing the way for continued work through four states to complete the 1,172-mile, 30-in. diameter pipeline that will connect the Bakken and Three Forks production areas in North Dakota to Patoka, Illinois. The pipeline is projected to be in service by 4Q this year.
Dakota Access, a subsidiary of Energy Transfer Partners, said the USD 3.78-billion project will be the Bakken’s largest oil pipeline, transporting 450,000 B/D with a capacity as high as 570,000 B/D of the Bakken light sweet crude oil to a market hub outside Patoka, where it will join existing pipelines to deliver the oil to refineries and markets on the US East Coast and the Gulf.
Dakota Access estimated the North Dakota segment of the pipeline construction was approximately 44% complete at the end of July. The mechanical completion, which includes construction and testing of the pipeline, is scheduled for 31 October.
In June, Iowa was the last state to approve construction on the pipeline and work started then; in the other three states, work began in May.
The company highlighted the benefits of the pipeline in reducing the current use of rail and truck transportation to move Bakken crude oil. The volume of oil production has strained the transportation options in the upper Midwest. A lack of rail cars to move grain out of South Dakota has magnified the problem. For example, tariffs on grain rail cars have increased from USD 50 to nearly USD 1,400 per car—shaving up to USD 1 from every bushel of corn shipped. (The commodity price of corn is USD 3.40/bushel at time of writing.)
The company continues to face opposition due to the pipeline’s proposed route, which includes multiple crossings of the Big Sioux, the Missouri, and the Mississippi rivers. In addition to the environmental concerns, property owners have fought the granting of eminent domain, and the Standing Rock Sioux tribe in North Dakota contends that the pipeline will twice pass under the Missouri River, which provides drinking water and irrigation to the tribe.
Phillips 66 Forms JVs To Boost Takeaway Capacity from Bakken and Permian
Phillips 66 and partners in two separate joint ventures are building the Red Oak and the Liberty pipeline systems to deliver a total of approximately 750,000 BOPD to the US Gulf Coast with startup of service in early 2021.
BHGE Launches Multimodal Facility Expansion in Angola
The facility will serve as a hub to support customers and projects in the Angola and Southern Africa region.
Cactus II Pipeline To Start Partial Service in the Permian by Year End
Approximately 90% of construction work has been completed on the pipeline, which is expected to transport up to 670,000 BOPD from the Permian Basin to the US Gulf Coast. Cactus II is one of several pipelines aimed at alleviating takeaway concerns in the Permian.
Don't miss out on the latest technology delivered to your email every two weeks. Sign up for the OGF newsletter. If you are not logged in, you will receive a confirmation email that you will need to click on to confirm you want to receive the newsletter.
18 June 2019
19 June 2019