(Bloomberg) -- Koch Pipeline called off
plans to build a 250,000 bpd crude line to Illinois from
North Dakotas Bakken formation, where a shale boom has
helped lift domestic production to the highest in a quarter
The indirect subsidiary of Koch Industries is no longer
developing the so called Dakota Express pipeline, Jake Reint,
a Koch spokesman, said by e-mail. He didnt provide a
reason for the decision. The Kansas based company was
scheduled to begin a 45-day open season to gauge interest
from potential shippers on the line in July.
The non binding open season for the Dakota Express
pipeline is no longer being pursued, Reint, based in
Wichita, said in the e-mail.
Hydraulic fracturing and horizontal drilling have helped
producers reach shale deposits of oil across the middle of
the United States from North Dakota to Texas, sending
domestic output to the highest level since 1988. Koch
proposed the Dakota Express line to help get the growing glut
of oil to refiners in the United States Midwest. It was
considering an extension to the Gulf Coast.
Koch would have used its existing Wood River pipeline, which
has delivered crude to refineries in the Minneapolis St. Paul
region, to complete the project
, the company said in June.
While the Wood River line remains operable and in good
condition, Koch stopped accepting nominations on it in
February 2013, Reint said.