Thunder Butte Petroleum Services Refinery Ground Broken

Thunder Butte Petroleum

Ground has been broken at the site of the Thunder Butte Petroleum Services Refinery southwest of Minot, ND. Three affiliated Indian tribes have joined together for the $450 million project that will be constructed on a 476-acre site.

This is the second refinery to break ground in the past two months. The Dakota Prairie Refinery Groundbreaking was held in March near Dickinson.

“It`s really an important time for our people. It`s exciting,” said tribal representative Ken Hall. “But we have to be mindful going forward to not lose our culture.”

Full-scale construction will start on the Thunder Butte Refinery in August and will be completed in phases over the next two years.

Once completed, the refinery will employee 100 people and refine 20,000 b/d of Bakken crude into diesel and other petroleum products.

You can read about the entire process at mharefinery.com

Tesoro & Savage Building Crude Unloading & Marine Loading Facility - Vancouver, WA

Tesoro and Savage Companies plan to build a 120,000 b/d crude-by-rail unloading and marine loading facility in Vancouver, Washington. The facility will be a likely destination for crude from Western Canada and the Bakken. the marine loading facility will provide access to multiple refineries along the West Coast. The facility is expected to cost between $75 and $100 million, with an in service date of some time in 2014. Initial capacity will be 120,000 b/d, with expansion capability up to 280,000 b/d. Approximately 40,0000 b/d of Bakken crude is already moving to refineries in Washington.

This development means crude volumes moving west could grow to 160,000 b/d. The Bakken provides the perfect supply source for a project like this.

“Building upon the recent success of the rail unloading facility at our Anacortes, Wash., refinery, where we have been delivering Mid-Continent crude oil via unit train in an environmentally sound and cost-effective manner, this project is the ideal next step for Tesoro as we drive additional feedstock cost advantage to the remaining refineries in our West Coast system.”

— Greg Goff, CEO of Tesoro

You can read more about oil prices received on the West Coast in the article Bakken Crude Can Get Premium Prices On the West Coast.

“We are looking forward to bringing crude oil destination services to the Port of Vancouver.”

— Kirk Aubry, COO of Savage.

The initial lease agreement is for ten years with the Port of Vancouver. Savage will oversee the design, construction, and operation of the facility.

Read more in the press release at tsocorp.com

Continental - PBF Energy To Move Bakken Crude to Delaware

Plains Crude By Rail Costs

Continental has signed an agreement with PBF Energy to supply Bakken crude oil to Delaware City, DE.

Oil will be delivered to PBF Energy's double loop track at its Delaware City Refinery. Over the past year, Continental has moved crude to the West, East, and Gulf Coasts by rail to maximize crude oil price realizations. Areas paying international crude prices offer between a $10-15 premium over markets reflecting WTI prices.

Continental Resources COO, Rick Bott, added, "This unique transaction illustrates the emerging shift in the light sweet crude market. In addition to diversifying Continental`s customer base and streamlining our value chain, it allows us to deliver unblended premium Bakken crude to the East Coast - a market that has historically been driven by imports of foreign oil."

Continental's size allows the company to negotiate transactions like this one that aren't huge, but provide price security, while bypassing over supplied markets in the Mid-continent.

PBF`s CEO, Tom Nimbley, said, "PBF has made significant investments in acquiring rail cars and developing our East Coast rail delivery infrastructure to increase our access to North American crude oil, which positions PBF to benefit from these cost-advantaged crudes. Delaware City`s heavy and light crude rail discharge facilities allow us to work directly with producers in Canada and the Mid-continent, like Continental Resources, and provide us with a competitive advantage versus northeast refiners that rely on third parties to deliver North American crude oil."

Dakota Plains Pioneer Project Under Construction

Dakota Plains Pioneer Project

Dakota Plains has started construction on the Pioneer Project. The expansion of the New Town rail facility will increase throughput capacity from 30,000 b/d to 80,000 b/d.

Once complete, the facility will include:

• Two 8,300 ft loop tracks, with each capable of handling 120 car unit trains
• Ten tank car load out building
• Two 90,000 barrel storage tank (180,000 bbls)
• Ten truck stations
• Five pipeline interconnections.

World Fuel Services Senior Vice President, Supply and Trading, Mr. Carlos Cuervo said: "The Pioneer Project will further expand our Bakken crude oil marketing capabilities. We are excited to be playing a major role in expediting this project."

The facility will utilize a total of 192 acres and is designed with the ability to expand to 270,000 bbls of storage. The site has four existing, 2,500 ft tracks that will be used for inbound oilfield supplies, such as sand and fuel.

Read more at dakotaplains.com

Oneok's Bakken NGL Pipeline & Stateline Processing Plant Open

Oneok Bakken Investments

Oneok Partners recently announced the opening of two major growth projects in the Bakken. As of April 9, 2013, both the Bakken NGL Pipeline and the Stateline II natural gas processing plant are running. When fully complete, the projects will account for as much as $800 million in investments.

The opening follows a recent announcement of plans to build a $325-360 million Garden Creek III plant. You can read more about the latest expansion in the article Oneok's Bakken Processing Expanding Through Garden Creek III

Bakken NGL Pipeline

The Bakken NGL Pipeline is a $450-550 million, 600-mile pipeline from the Williston Basin to an interconnect with the Overland Pass Pipeline in Colorado. The pipeline has the capacity to move 60,000 b/d of unfractionated NGLs and will ultimately move 135,000 b/d once additional pump stations are installed. The pump station installations will be completed in the third quarter of 2014 and have a price tag of $100 million.

"The Bakken NGL Pipeline is the first pipeline to transport natural gas liquids from the Williston Basin to NGL fractionation and storage infrastructure in the Mid-Continent and Texas Gulf Coast," said Terry K. Spencer, president of ONEOK Partners. "This project and our continued investments in the Williston Basin reflect our commitment to provide producers with the essential NGL infrastructure needed as they continue to develop the Bakken Shale and Three Forks formations."

Stateline II Natural Gas Processing Plant

The Stateline II plant is a $135-150 million, 100 mmcfd processing plant in Western Williams County, ND. The plant represents the fourth of six processing plants planned or in operation. Oneok's processing capacity is now 390 mmcfd and will ultimately grow to 590 mmcfd in the first quarter of 2015.

"The completion of Stateline II, along with our other two plants and associated infrastructure that are operational, will reduce the flaring of natural gas in the region, enabling producers to deliver natural gas to customers and improve the environment," Spencer added.

This leaves only two of the six plants remaining to be completed. The Garden Creek II and III plants are under construction in eastern McKenzie County, ND.

1. Grasslands (90 mmcfd)
2. Garden Creek I (100 mmcfd) online December 2011
3. Stateline I (100 mmcfd) completed September 2012
4. Stateline II (100 mmcfd) expected April 2013
5. Garden Creek II (100 mmcfd) expected completion Q3 2014
6. Garden Creek III (100 mmcfd) expected completion Q1 2015