North Dakota regulators on Wednesday approved the conversion of a 42-mile portion of a crude oil pipeline to carry natural gas liquids (NGL) under a project by a unit of San Antonio-based Andeavor Logistics.
The three-member North Dakota Public Service Commission (PSC) approved the Andeavor Field Services LLC’s plan, which includes building two NGL segments, in addition to converting the existing 12-inch oil pipeline.
Slated for conversion is the BakkenLink oil pipeline, originally approved to transport crude oil in 2012. Earlier this year the PSC also approved another NGL line by a unit of Oklahoma-based Oneok, the 45-mile Cherry Creek Pipeline.
Andeavor already has received PSC approval to build a 44-mile, $46 million NGL pipeline system in McKenzie, Billings and Stark counties that would use six-inch and eight-inch diameter steel pipelines.
The system would have three segments that run north (17 miles), south (22 miles) and five miles of four separate lines for a product transfer segment. The north and south segments would interconnect using 42 miles of converted pipeline, initially carrying up to 15,000 b/d with expansion capacity up to 34,000 b/d. The transfer segment would have normal throughput of 7,200 b/d with maximum capacity of 43,000 b/d.
There is no direct reporting of NGL production volumes in the state, but North Dakota Pipeline Authority’s Justin Kringstad, executive director, told NGI’s Shale Daily that estimates put the liquids production at about 450,000 b/d.
Andeavor’s pipeline system expects to transport mixed NGLs from the Watford City area to a company gas processing plant near Belfield, at which point the liquids would be separated into ethane, propane, butane and natural gasoline. The products would then be transported by pipeline to the Andeavor Fryburg Rail Terminal and loaded onto rail cars.
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