American Midstream Begins Crude Oil Delivery Into Dakota Access Pipeline
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Texas-based American Midstream Partners has started delivery of crude oil from the Bakken crude oil gathering system into the $3.8bn Dakota Access Pipeline (DAPL).
The 80.5km-Bakken crude oil gathering system located near Watford City in North Dakota has a production capacity of up to 40,000 barrels per day.
American Midstream Partners says that its DAPL interconnect gives more options to high-value market alternatives and take-away capabilities for gathered barrels and volume brought via its trucking terminal.
Strategically located, the connection provides producers the access to DAPL upstream of the delivery and storage hub at Johnsons Corner as per the midstream company.
American Midstream Partners President and CEO Lynn Bourdon said: “We are excited to have initial deliveries into DAPL, an integral connection to realize higher market returns for our customers.
“The connection is a continuation of our strategy to optimize the long-term value of our assets by giving producers a suite of services with strong market connectivity via multiple pipeline takeaway points.”
The Houston-based midstream company says that it has grown its service offerings and the competitive footprint of its system by adding hydrogen sulfide treating capabilities. This, it says enables producers to meet pipeline specifications for crude oil delivery.
The Dakota Access Pipeline, also known as the Bakken Pipeline, is a 30 inch underground pipeline connecting the Bakken/Three Forks production area in North Dakota to a storage and terminalling hub outside Patoka, Illinois.
A joint venture between Energy Transfer Partners, MarEn Bakken and Phillips 66, the Dakota Access Pipeline spans across North Dakota, South Dakota, Iowa and Illinois.
Recently, Phillips 66 Partners has agreed to buy a stake of 25 percent in the Bakken Pipeline from Phillips 66 as part of a $2.4bn transaction.
Source: Energy Business Review
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