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Rush to handle Bakken volumes
Two affiliates of Canadian pipeline company Enbridge have formed a joint venture to handle growing crude volumes from the Bakken and Three Forks formations, aiming for incremental capacity of 145,000 barrels per day in early 2013 raising capacity to 325,000 bpd, with the prospect of adding another 280,000 bpd at low cost.
Steve Wuori, Enbridge’s executive vice president of liquids pipelines, said Aug. 24 the investment of US$370 million in North Dakota and C$190 million in Canada reflects the “substantial” growth in the region, based on discussions with producers in the burgeoning light sweet crude play.
Enbridge said anchor shippers have made sufficient long-term commitments for the project to proceed and more are expected following an open season later this year.
The additions follow completion in January of a 51,000 bpd expansion of Enbridge’s 161,500 bpd North Dakota system. In addition, three separate expansions by the Enbridge Income Trust will double pipeline capacity from the Saskatchewan Bakken play to 230,000 bpd late this year.
Production of Bakken crude in June averaged 315,278 bpd in North Dakota, about 60,000 bpd in Montana and 4,152 bpd in South Dakota.
In the same month 330,000 bpd was shipped by pipeline, 30,000 bpd by rail and 22,000 bpd was trucked north into Canada.
Bakken output is forecast to reach 350,000-450,000 bpd by the first quarter of 2013.
New rail projects are underway to increase shipping volumes, including Hess Corp’s 130,000 bpd terminal and rail will play a key role until big pipeline projects by Enbridge and TransCanada gain regulatory approval in the face of some stern opposition.
In July, Oneok Partner announced plans to spend US$550 million on a 615-mile pipeline to transport natural gas liquids from the Bakken shale in North Dakota to its Overland pipeline from southern Wyoming to Kansas.
Oneok’s Chief Operating Officer Terry Spencer said pipelines were urgently needed for NGL-rich gas production from the Bakken and Three Forks.
—Gary Park
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