Enable Midstream Is Planning an IPO - Bakken Gathering Assets Included

Enable Midstream's Gathering and Processing Assets

Enable Midstream (ENBL) has filed for an initial public offering and expects to raise net proceeds of $500 million to be used in expansion projects. The company will trade as a master limited partnership (MLP).

The deal includes Bakken gathering assets that were contributed by CenterPoint Energy.

The gathering system commenced operations in November 2013 and is expected to be in full operation in the third quarter of 2014. Enable Midstream estimates it could spend as much as $110 million on the Bakken system.

The company's Bakken system will have capacity of 19,500 b/d when fully operational and that entire amount is contracted through 2028. While only partially in service for most of the year, Enable estimates it will gather a little less than 10,000 b/d in 2014.

The company was formed in May of 2013 by affiliates of CenterPoint Energy, OGE Energy and ArcLight Capital Partners. The assets include CenterPoint's interstate pipelines and field services, as well as OGE's midstream business.

Enable Midstream is managed by a general partner whose governance is shared by CenterPoint Energy and OGE Energy on a 50/50 basis.

About Enable Midstream

Enable Midstream owns, operates and develops strategically located natural gas and crude oil infrastructure assets. Enable Midstream's initial assets include approximately 11,000 miles of gathering pipelines, 11 major processing plants with approximately 1.9 billion cubic feet per day of processing capacity, approximately 7,800 miles of interstate pipelines, approximately 2,300 miles of intrastate pipelines and eight storage facilities comprising 86.5 billion cubic feet of storage capacity.

Read the full press release at oge.com

Dakota Plains Facility Expansion Expected Online in December - Video

Dakota Plains expects to commission an expansion of its Pioneer Terminal in New Town, ND, on December 18th.

Read more:Dakota Plains Pioneer Project Under Construction

When completed, throughput capacity at the rail terminal will increase from 30,000 b/d to 80,000 b/d. The facility will also have 180,000 barrels of storage.

The expansion couldn't come at a better time. The spread between WTI and Brent oil prices is at the highest point since March. A larger spread makes moving oil by rail more attractive.

“With price spreads and throughput volumes at their current high levels, and with our newly expanded Pioneer Terminal soon allowing higher throughput volumes, we believe we will be well-positioned for profitability as we move forward.”

— Mr. Craig McKenzie, CEO

Read more at www.dakotaplains.com

Enbridge's Sandpiper Pipeline Gains Anchor Shipper in Marathon Petroleum - Open Season

Sandpiper Pipeline Map - Enbridge

Enbridge Partners announced it has reached an agreement with Marathon Petroleum to become an anchor shipper on the Sandpiper Pipeline.

The Sandpiper Pipeline is a 225,000 b/d oil pipeline that will run 375 miles from Beaver Lodge, North Dakota, to Clearbrook, Minnesota. The project also includes a 30-inch, 233-mile pipeline extension from Clearbrook, Minnesota, to Superior, Wisconsin.

Marathon will fund 37.5% of the pipeline and gain a 27% interest in Enbridge's North Dakota System. The project has an estimated cost of $2.6 billion and is expected in service in the first quarter of 2016.

“The Sandpiper Project provides much needed pipeline capacity to enable rapidly growing Bakken crude oil production.......” said Stephen J. Wuori, president. “We are delighted to welcome Marathon Petroleum as both a committed shipper and a partner. Their shipping commitment demonstrates the economic attractiveness of establishing a low-cost reliable pipeline solution for Bakken producers to access the premium North American markets for light crude oil.”

An open season for the pipeline starts at 12 pm MST on November 26, 2013 and ends at 5 pm on January 24, 2014.

Read the full press release at enbridgepartners.com

Oneok Investing More In Bakken Midstream Infrastructure

Oneok North Dakota Bakken Asset Map

Oneok is planning another $650-780 million in infrastructure investments in the Bakken.

The company will expand its Bakken NGL Pipeline, expand gathering & compression in the area, and build a seventh NGL processing plant in McKenzie County, ND.

Oneok will spend $100 million to expand the Bakken NGL pipeline that came online in April of 2013. The pipeline was originally planned with capacity of 60,000 b/d and is currently being expanded to 135,000 b/d. This will mark the second expansion and grow capacity to 160,000 b/d.

The Lonesome Creek processing plant (200 mmcfd) will have a price tag of $320-390 million and the expansion of gathering infrastructure is estimated to cost $230-290 million.

“Production in the Williston Basin continues to increase with no signs of leveling off or slowing,” said Terry K. Spencer, president. “The new Lonesome Creek plant and related infrastructure will be well-positioned to capitalize on existing ONEOK Partners assets and provide producers in the area with essential natural gas processing capacity....”

Oneok will have approximately 800 mmcfd of processing capacity in North Dakota when the Lonesome Creek Plant is completed.

Three of the seven planned plants are yet to be completed. The Garden Creek II and III are under construction and ground will be broken on the Lonesome Creek Plant soon.

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
7. Lonesome Creek (200 mmcfd) expected in late 2015

Western Refining Investing in the Bakken Through Minnesota Refinery

Northern Tier Energy Asset Map

Western Refining has agreed to acquire Northern Tier Energy's general partner from Acon Investments and TPG for total consideration of $775 million.

The acquisition gives Western ownership in an 89,500 b/d refinery in St. Paul Park, MN, an interest in a 455,000 b/d pipeline moving crude from Clearbrook to St. Paul Park, as well as other assets.

More than half of the feedstock used in the St. Paul Park refinery is considered light sweet and "most" of the light-sweet crude comes from the Bakken.

“This investment further enhances our strategic goal of expanding our refining presence in areas with direct pipeline access to cost-advantaged crude oil resources...... Northern Tier Energy’s St. Paul Park refinery is a very successful refinery with pipeline access to cost-advantaged crude oil and refined product regions that historically have generated strong product margins.”

— Jeff Stevens, Western's CEO

The CEO is referencing Bakken oil when he mentioned "cost-advantaged" crude oil. The refinery is strategically placed to benefit from future Bakken production growth.

Northern Tier's Assets Include:

• St. Paul Park Refinery - 89,500 barrels per day refining capacity and processes 100% cost-advantaged crude oil - 75% light, 25% heavy
• Pipeline access to Bakken and Canadian crude oil - 17% interest in a 455,000 barrel per day crude oil pipeline
• Products terminals, storage tanks, rail facilities and Mississippi river dockage
• Retail assets which include the SuperAmerica retail channel
• 163 company operated convenience stores
• 74 franchised convenience stores

Read the full story at jamestownsun.com