American Midstream Enters Dakota Access Connection Agreement Expanding Bakken Presence
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American Midstream Partners, LP has entered a connection agreement with Dakota Access Pipeline (DAPL), the 1,172-mile 30-inch pipeline that extends from the partnership’s Bakken formation production area in North Dakota to Patoka, Illinois.
The new DAPL interconnect will tie into the partnership’s Bakken crude oil gathering system which consists of interstate pipelines with capacity to transport up to approximately 40,000 barrels per day of crude oil. In addition, the partnership’s Bakken crude oil gathering system has crude oil trucking capabilities located near Watford City, ND that provides greater producer access to market alternatives and off-take capabilities. American Midstream recently added hydrogen sulfide treating to its Bakken system allowing customers to meet pipeline specifications for crude oil delivery thereby expanding customer service offerings and the competitive footprint of the system. Leveraging off the recent additions to the partnership’s system and the new connection to DAPL, American Midstream will be able to deliver an incremental 20,000 barrels per day to market.
“This new interconnect with DAPL is a continuation of our strategy to optimize the long-term value of our assets by providing producers a suite of services that include gathering and processing with strong market connectivity via multiple pipeline takeaway points. Through the expansion of our services and our ability to increase the value of our gathering infrastructure, the Partnership has been able to capitalize on a strategic asset that increases optionality and additional takeaway points for our customers,” said Lynn L. Bourdon, president and chief executive officer of American Midstream.
About American Midstream Partners
American Midstream Partners, LP is a growth-oriented limited partnership formed to provide critical midstream infrastructure that links producers of natural gas, crude oil, NGLs, condensate and specialty chemicals to end-use markets. AMID’s assets are strategically located in some of the most prolific onshore and offshore basins in the Permian, Eagle Ford, East Texas, Bakken and Gulf Coast. AMID owns or has an ownership interest in more than 3,850 miles of interstate and intrastate pipelines, as well as ownership in gas processing plants, fractionation facilities, an offshore semisubmersible floating production system with nameplate processing capacity of 80 MBbl/d of crude oil and 200 MMcf/d of natural gas; and marine terminal sites with approximately 2.4 MMBbls of storage capacity.
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