US oil pipelines
In April 2012, ONEOK Partners announced plans to invest $US1.5–1.8 billion between 2012 and 2015 to build the 2,092 km Bakken Crude Express Pipeline with the capacity to transport 200,000 bbl/d of crude oil from the Bakken Shale to Cushing, Oklahoma.
The pipeline would transport light, sweet crude oil from the Bakken Shale in the Williston Basin in North Dakota to the Cushing crude oil market hub. Additionally, the proposed pipeline route would be well positioned to transport crude oil production from the Niobrara Shale. The proposed route is expected to parallel more than 80 per cent of ONEOK’s existing and planned natural gas liquids pipelines.
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.
In May 2012, SemGroup Corporation, Chesapeake Energy Corporation, and Gavilon LLC formed Glass Mountain Pipeline LLC to build a 338 km crude oil pipeline in Oklahoma.
The proposed pipeline, which will be constructed by SemGroup, will consist of two laterals. One lateral will originate near the town of Alva in Woods County. The second lateral will originate near the town of Arnett in Ellis County.
The new pipeline will have an initial capacity of approximately 140,000 bbl/d and 440,000 bbl/d of intermediate storage.
Construction of the pipeline is expected to begin this year and be commissioned in the second half of 2013. Upon completion, SemGroup’s master limited partnership Rose Rock Midstream will serve as the pipeline operator.
Enbridge is currently in the design and procurement stage of its 950 km Flanagan South Pipeline Project – a 36 inch diameter interstate crude oil pipeline that will originate in Flanagan, Illinois, and terminate in Cushing, Oklahoma, crossing Illinois, Missouri, Kansas and Oklahoma. The majority of the pipeline will parallel Enbridge’s existing Spearhead crude oil pipeline. Enbridge has also proposed to install seven pump stations, including one at the Flanagan terminal and six along the pipeline route. Initial capacity will be 585,000 bbl/d of oil.
In February 2012, Plains All American Pipeline (PAA) announced plans to construct a new 274 km pipeline to service the increasing Mississippian Lime crude oil production in northern Oklahoma and southern Kansas.
This pipeline – in conjunction with the Medford to Cushing Pipeline conversion – is designed to provide approximately 175,000 bbl/d of crude oil transportation capacity to the Cushing market and is expected to be completed in mid-2013.
Originating in Alfalfa County near Alva, Oklahoma, and terminating at PAA’s crude oil storage facility in Cushing, the new pipeline will share approximately 129 km of right-of-way with PAA’s Medford to Cushing Pipeline. PAA plans to extend the pipeline from Alva northward into Kansas as demand warrants.
The reversal of the 805 km, 20 inch diameter Seaway crude oil pipeline was completed in May 2012, allowing it to transport crude oil from Cushing, Oklahoma, to the Gulf Coast. The pipeline is owned by Seaway Crude Pipeline Company, a 50-50 joint venture owned by affiliates of Enterprise Products Partners and Enbridge.
The reversal will initially provide 150,000 bbl/d of capacity, which is expected to increase to more than 400,000 bbl/d in the first quarter of 2013 with additional modifications and increased pumping capabilities.
In addition, Enterprise and Enbridge are currently constructing the 804 km, 30 inch diameter Seaway Twinning Pipeline, which is expected to more than double the Seaway Pipeline’s capacity to 850,000 bbl/d by mid-2014. An additional 137 km lateral is planned as part of the twinning project.
US NGL pipelines
In April 2012, Enterprise Products Partners, Anadarko Petroleum Corporation and DCP Midstream agreed to design and construct the 700 km Front Range Pipeline – a natural gas liquids (NGL) pipeline from the Denver-Julesburg Basin in Colorado to Skellytown, Texas. The pipeline is expected to begin service in the fourth quarter of 2013.