Pipeline Operators Continue Open Season Calls

By The Bakken Magazine Staff | April 30, 2014

Depending on shipper commitments, Bakken crude could be shipped to the Gulf Coast by the Dakota Access LLC pipeline, a proposed pipeline under development by Energy Transfer Partners. ETP has several pipeline assets in the Gulf Coast and near Illinois. The energy company also owns Sunoco Inc., and a large portion of Sunoco Logistics LP, a company that operates crude oil and refined product pipelines and terminals. ETP has issued an open season to Bakken shippers. Through the open season, shippers that commit would be given a discounted rate in comparison to other uncommitted shippers for the same volumes delivered to the same destination point. Committed shippers would also receive the option of forming five-, seven- or 10-year commitments depending on the destination point. The Dakota Access pipeline capacity and overall scope will depend on shipper commitments. The project could be operational by 2016, according to the company.

Enable Midstream Partners LP has already found success, and shipper commitments from Bakken operators. XTO Energy, a subsidiary of Exxon Mobil Corp., recently formed a long-term agreement with Enable to gather and move XTO’s Bakken crude. Enable will build a gathering and transport system in the North Dakota Counties of Williams and Mountrail. The 30,000 barrels per day system will require 85 miles of gathering lines. XTO has also agreed with Enable to build a water gathering and transport system to move produced water. The system will require 75 miles of pipeline.

In April 2013, XTO agreed with Enable to build a crude gathering system for XTO’s Bakken crude in Dunn and McKenzie counties. That system can move 19,500 bopd.

The success of Enable should provide incentive for Hiland Crude LLC, the Oklahoma-based, Harold Hamm-affiliated pipeline company. In the same week that Enable and XTO agreed to the long-term commitment, Hiland issued an open season call to expand its exisiting crude transporting abilities on the Double H Pipeline. The 488-mile line is currently under construction, and originates near Dore, N.D., and Sidney, Mont., and ends at Guernsey, Wyo. The second open season call for the pipeline will add capacity and pump stations. By the fourth quarter, Hiland could move up to 100,000 barrels of oil per day through the Double H pipeline.