Enterprise Products Partners L.P. (NYSE:EPD) today announced the start of a binding open commitment period to determine shipper demand for capacity on a proposed new pipelinethat would originate in the Williston Basin of North Dakota and also serve the Powder River and Denver-Julesburg (â€œDJâ€) Basins. The 30-inch diameter pipeline would extend approximately 1,200 miles to the Cushing hub in Oklahoma and is currently designed to have an initial capacity of approximately 340,000 barrels per day (â€œBPDâ€) of crude oil, expandable to more than 700,000 BPD.
The Bakken-to-Cushing pipeline would have the capability to transport up to six grades of crude oil and products, including Rockies Condensate and Processed Condensate. Subject to sufficient customer commitments, the pipeline is expected to begin service in stages, starting with the DJ-to-Cushing portion in the fourth quarter of 2016, and should be fully operational by the third quarter of 2017.
â€œThis pipeline offers a reliable, safe, and economical solution that promotes continued development of some of our nationâ€™s most prolific producing areas and reduces the need for imports of crude oil,â€ said A.J. â€œJimâ€ Teague, executive vice president and chief operating officer of Enterpriseâ€™s general partner. â€œBy leveraging the capabilities of our existing midstream network, the Bakken-to-Cushing pipeline would provide flow assurance and market choice. At Cushing, shippers would have access to one of the most liquid crude oil trading hubs in the world, as well as a comprehensive network of storage and pipelines serving the U.S. Gulf Coast refining complex and waterborne transportation options.â€