ONEOK Partners plans to invest $1.5 billion to $1.8 billion
between now and 2015 to build a 1,300-mile crude oil pipeline
with the capacity to transport 200,000 bpd, the company said on
The Bakken Crude Express Pipeline will transport light-sweet
crude oil from the Bakken Shale in the Williston Basin in North
Dakota to the Cushing, Okla., crude market hub.
"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,
"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
also represents our entry into the crude-oil transportation
business and utilizes our existing core capabilities of
transporting and storing natural gas, natural gas liquids and
refined petroleum products," he added.
"Many of the supply commitments under negotiation are with
the same producers in the Williston Basin that we currently
Supply commitments for the proposed pipeline are in various
stages of negotiation.
Following receipt of all necessary permits and compliance
with customary regulatory requirements, construction is expected to begin in
late 2013 or early 2014 and be completed by early 2015, the
Based on supply commitments prior to construction, the capacity can be
Additionally, the proposed pipeline route will be
well-positioned to transport crude oil production from the
Niobrara Shale, ONEOK noted.
The proposed pipeline route is expected to parallel more
than 80% of the partnership's existing and planned natural gas
liquids pipelines, according to the company, which says it will
be designed, constructed and operated using proven technology, pipeline control systems
and continuous safety monitoring.
A map of the proposed pipeline system can be viewed here.