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Proposed Bakken Oil Pipeline Testing Market Interest

A unit of American Midstream Partners LP is holding a binding open season through June 22 for a new 50-mile oil pipe gathering/transportation system in McKenzie County in northwest North Dakota, the heart of the state's producing region.

American Midstream Bakken LLC plans to transport up to 40,000 b/d of crude oil for delivery to major intrastate and interstate pipeline systems beginning in June.

"The gathering system is essentially built but not operating," a spokesperson told NGI's Shale Daily on Wednesday. "We anticipate it will be operating in June."

The Denver-based company said the pipe initially would be able to transport up to 15,000 b/d with a maximum capacity of up to 40,000 b/d.

"During the binding open season, potential shippers have the opportunity to obtain crude oil transportation service on the Bakken system on a committed or uncommitted basis at various tier-based rates, according to volumes transported," the spokesperson said. "Parties interested in becoming committed shippers can do so by making long-term acreage or volumetric dedications for crude oil gathering and transportation service on the Bakken system."

The open season also offers potential shippers the option of delivering volumes into the American Midstream gathering system via truck.

For information, contact Rod Donovan, vice president of business development, at (713) 815-3970.

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