Enbridge Completes Bakken Pipeline Expansion & Berthold Rail Facility

Enbridge Bakken System Map

Enbridge has completed the most recent Bakken Pipeline System expansion and opened its Berthold Rail Facility.

The Bakken Pipeline Expansion included two projects that added 145,000 b/d of pipeline capacity out of the Bakken region. The Berthold Rail Facility added 80,000 b/d of capacity and Enbridge now has the capacity to move 415,000 b/d out of North Dakota. That's a little more than half of the 820,000 b/d of oil produced in North Dakota.

“The completed Bakken Pipeline Expansion and Berthold Rail Facility are now providing options that are sorely needed. Combine these finished projects with the upcoming capacity within the Sandpiper Pipeline, and Enbridge will have the ability to move 660,000 barrels per day from the Bakken by early 2015.”

Enbridge partnered with the Berthold Farmers Elevator to construct the new rail facility and the facility has been in service since the second quarter of this year.

The company is also holding open houses in North Dakota, Minnesota, and Wisconsin this week related to the path of the proposed Sandpiper Pipeline Project. The pipeline will add 225,000 b/d of capacity out of the basin and has an expected in service of late 2014 or early 2015.

Derailed Train In Canada Was Carrying Bakken Oil

Oil Rail Car Image

A train carrying Bakken oil crashed in Lac Megantic, Quebec. The train was pulling 72 car loads or approximately 50,000 barrels of oil when it lost control. The train was making its way through Canada in route to a refinery in New Brunswick. An investigation will ensue, but initial reports make it sound as if the air brake was engaged and someone shut down the engine. From there, the train rolled out of control almost seven miles before derailing in Lac Megantic. We've included a video report below:

The death toll now stands at 13, with 50 people still missing.

It's a horrible tragedy and I believe we owe it to ourselves to ask the question whether or not it should be as difficult as it is to build pipelines in the U.S.

Summit Midstream Expanding Bakken System In Williams & Divide

Summit Midstream plans to spend $60 million to expand its Divide crude oil and water gathering system in Williams and Divide counties. The system includes 90 miles of crude oil gathering pipe already and an additional 145 miles of pipe is being added. The expansion will be able to handled 45,000 b/d of crude oil and 45,000 b/d of water.

Summit purchased Bison Midstream and associated gas gathering for $250 million earlier in June

“The execution of this new commercial agreement reflects the next step in our growth strategy to expand our presence in the Bakken Shale Play through organic development projects.”

— Steve Newby, CEO

The expansion is supported by a ten year agreement with a large independent operator that has dedicated 250,000 acres to the system. The system will be in service in the fourth quarter of 2013 or first quarter of 2014.

Read more at summitmidstream.com

Koch Plans Open Season For Bakken Crude Pipeline To Illinois

Koch Pipeline is conducting phase I of an open season for Dakota Express Pipeline (250,000 b/d) starting July 1, 2013. The open season will last 45 days and is non-binding. The proposed pipeline will move crude from western North Dakota to receipt points in Illinois. A portion of the pipeline will be new build and a portion will include reversing Koch's Wood River Pipeline. The Wood River Pipeline moves crude from Hartford, Illinois, to Saint Paul, Minnesota, currently.

Koch Pipeline has completed an engineering viability study on reversing the flow of Wood River Pipeline and utilizing it as part of the Dakota Express Pipeline system.

If the pipeline moves forward, it could be in service by 2016 with capacity of 250,000 b/d. Koch will also explore plans to connect the pipeline to the Eastern Gulf Crude Access Pipeline, which connects to eastern Gulf Coast delivery points.

Summit Midstream Buys Bison Midstream - Bakken Natural Gas Gathering System

Bison Gathering System - Bakken

Summit Midstream has agreed to buy Bison Midstream, LLC, for $250 million.

Bison Midstream owns a natural gas gathering system that includes 300 miles of low and high pressure gathering lines, as well as six compressor stations (5,950 hp) in Burke and Montrail counties.

New compression is being added and capacity should grow from 20 mmcfd to 30 mmcfd by year-end 2013. A total of $40 million is being spent to improve the system in 2013 ($29 million remaining).

The Bison system is supported by producer commitments from over 675,000 acres and fee based agreements are in place for >$155 million in revenue through 2020. Additional agreements are currently being negotiated.

Steve Newby, CEO commented, "We are very excited about the acquisition of Bison, our first drop down transaction from Summit Investments"

The system includes 229 miles of polyethylene pipe for low-pressure gathering and 70 miles of high pressure steel pipe.

If I deciphered the information on the company's website correctly: Bison Midstream was owned by Summit Investments, who is owned by members of Summit Midstream's management, Energy Capital Partners, and GE Energy Financial Services.

The deal was announced in conjunction with a $210 million acquisition in the Marcellus Shale.

Read the full press release at summitmidstream.com