By Sarah Pridgeon
Oneok Partners have revealed plans to construct a 1,300-mile pipeline that will carry crude oil from the Bakken Shale in North Dakota to the oil trading hub in Cushing, Oklahoma. The proposed route will run parallel to the natural gas liquid pipeline due to be constructed this summer.
The “Bakken Crude Express Pipeline” will have the capacity to transport 200,000 barrels per day of light-sweet crude oil. Oneok Partners will invest up to $1.8 billion in the project and expect construction to take place between late 2013 and early 2015.
The proposed pipeline represents the partnership’s entry into the crude oil transportation business, utilizing its existing transportation and storage capabilities. The supply commitments being negotiated are largely with the same producers in the Williston Basin that Oneok currently serves.
“As producers continue to aggressively develop crude oil from wells in the Bakken Shale, more crude-oil pipeline takeaway capacity will be required,” said Terry K. Spencer, Oneok Partners president, in the press release. “This proposed pipeline will provide producers with efficient and reliable transportation of their product directly to one of the largest crude oil market hubs in the US.”
As the pipeline will run adjacent to the soon-to-be-constructed natural gas liquids pipeline, it will also run across many of the same private properties. “Once a route has been finalized for the Bakken Crude Express Pipeline, we will work with landowners to obtain an additional easement for that pipeline project,” said Brad Borror, Supervisor of External Communications.