American Midstream launches Bakken pipeline open season

By Emily Aasand | May 27, 2015

American Midstream Partners announced that American Midstream Bakken LLC is conducting a binding open season for a proposed 50-mile Bakken crude oil gathering and transportation system in McKenzie County in western North Dakota.

At its maximum, the pipeline will be able to transport up to 40,000 barrels of oil per day (bopd) to major pipeline systems beginning in June 2015. The Bakken system will have an initial capacity of roughly 15,000 bopd with the ability to expand to 40,000 bopd. The gathering system is supported by 24,000 acres dedicated under a long-term, fee-based contract with an anchor producer. According to the company, other opportunities for additional services include gas gathering and processing.

During the binding open season, potential shippers have the opportunity to obtain crude oil transportation service on the Bakken system on a committed or uncommitted basis at various tier-based rates according to volumes transported, the company said. Parties interested in becoming shippers can make long-term acreage or volumetric dedications for crude oil gathering and transportation service on the Bakken system.

In its first quarter 2015 financial report, the Denver-based company said its growth capital expenditures for 2015 range between $125 million and $135 million, which includes the construction of additional midstream infrastructure including the Bakken crude oil gathering system.

“A key focus in 2014 is execution of asset-development projects that will contribute incremental, fee-based cash flow to our portfolio, including ongoing expansion of the Lavaca system where volumes have tripled since the January 2014 acquisition and commissioning the Bakken crude oil gather system in the second quarter,” said Steve Bergstrom, executive chairman, president and CEO.

The open season will also provide potential shippers with the opportunity to deliver volumes into the system via truck rack and will last 30 days, closing on June 22.

 

For more on the Bakken, follow us on Twitter @TheBakkenMag