Hiland Partners is planning a new Bakken pipeline from Dore, ND, to Guernsey, WY. The Double H Pipeline will connect with the Pony Express Pipeline in Guernsey and crude will ultimately be moved to Cushing, Oklahoma.
The ~460-mile, 50,000 b/d pipeline has an estimated price tag of $300 million. The 12-inch line will have the ability to expand to 100,000 b/d if needed.
“That`s a new line of business, long-haul interstate crude oil transportation, that we`re getting into,” said Derek Gipson, Hiland Partners executive vice president and chief financial officer. “We expect that line to start moving barrels in late 2014. Construction will kick off in the back half of this year. That`s a key project for us to execute on.”
The Hiland executive also believes that oil will see better pricing at Cushing.
The Pony Express pipeline is being converted from natural gas to oil and will be extended to Cushing, OK. It’s conversion will alleviate congestion that has often cause Rockies crude oil prices to trade at discounts of more than $20 to WTI.
Read more at enidnews.com
Hiland Partners, LP is a midstream energy partnership engaged in purchasing, gathering, compressing, dehydrating, treating, processing and marketing of natural gas and the fractionating, or separating, and marketing of natural gas liquids, or NGLs. The company was founded by Continental Resources CEO and chairman Harold Hamm.