Paradigm Energy Partners LLC said one of its subsidiaries has finalized an agreement with an undisclosed private company to build a new gathering system for Bakken Shale crude oil in North Dakota.
On Tuesday, the Irving, TX-based company said its subsidiary, Paradigm Midstream Services ND LLC, will construct a 23-mile gathering system that will deliver approximately 17,000 acres of production from the Ross Field in northern Mountrail County, ND, to Paradigm's joint venture (JV) rail terminal in Palermo, ND. From Palermo, producers will have access to markets on the west and east coast via the BNSF Railway, as well as downstream markets near Stanley, ND, where Paradigm has several existing pipeline connections.
Financial terms of the deal were not disclosed. Paradigm, a full-service midstream company focused on the Bakken and the Eagle Ford Shale in South Texas, said the agreement is secured through an acreage dedication.
"This is a substantial contract with a strong producer in a new area for Paradigm and supports our abilities as a preferred service provider," Paradigm CEO Troy Andrews said in a statement. "Expansion of our crude oil service offerings and gathering asset infrastructure into northern Mountrail County is a natural extension of our initial asset footprint. This will be a significant area for Paradigm's future growth."
In the Bakken, Paradigm is focused on opportunities in North Dakota's Dunn, McKenzie and Mountrail counties to add value to its JV rail terminal at Palermo. It is also focused on adding value to the proposed Sacagawea Pipeline, a 91-mile crude oil pipeline with 100,000 b/d of capacity being developed by Sacagawea Pipeline Co. LLC, a JV between Paradigm, Phillips 66 Partners LP and Grey Wolf Midstream LLC (see Daily GPI, Aug. 21, 2015).
The Sacagawea Pipeline will connect markets in Stanley, Ross, and Palermo, ND, with markets in Johnson's Corner near Paradigm's storage terminal in Keene, ND. Both the pipeline and the terminal are expected to be in service by the end of 3Q2016.