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Massachusetts Firm Aims to Expand Bakken Transport System

Waltham, MA-based Global Partners LP made public on Wednesday an agreement with a unit of Summit Midstream Partners LLC to expand its takeaway capacity for Bakken crude oil for marketing on the East and West Coasts. It is part of the $300 million in North Dakota investments planned by Summit (see Shale Daily, June 10).

Global struck an agreement with Summit's Meadowlark Midstream Co. LLC to build, own and operate a crude oil truck unloading station and a 47-mile oil pipeline serving Basin Transload's Columbus rail terminal in Burke County, ND. The additional capacity is expected to be in operation in the second quarter of 2015.

"Crude delivered to this rail terminal has a single line haul rail access to Global's Albany, NY, terminal and can also access other rail-serviced terminals throughout the United States," a Global spokesperson said.

In conjunction with the Meadowlark agreement, Global also has started adding tankage totaling 176,000 bbl at the Columbus facility. This will raise its total tankage capacity there to 446,000 bbl for the midstream logistics and marketing company, which operates a network of Northeast terminals for refined petroleum products.

"The crude oil transportation system being developed [adding 50,000 b/d capacity] by Meadowlark further expands our gathering capabilities in the Bakken region, providing our customers with even greater access to refineries and other downstream distribution points on both the East and West Coasts," said Global CEO Eric Slifka.

Slifka said new infrastructure connection projects provide optionality for getting Bakken crude to "the highest-value markets nationwide."

On the East Coast where it is based, Global has a five-year take-or-pay contract with refiner Phillips 66 to buy 91 million bbl of Bakken crude oil that will be barged from Albany, NY, to the refinery in Linden, NJ.

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