The Bakken Shale may be booming, but Oneok Partners LP’s recent open season for the proposed Bakken Crude Express Pipeline was a bust, and the project has been scrapped, the partnership said Tuesday.
“Despite the robust outlook for crude oil supply growth in the Williston Basin in the Bakken Shale, we did not receive sufficient long-term commitments under the terms we needed to construct the Bakken Crude Express Pipeline,” said Oneok Partners President Terry K. Spencer.
The project was to have been Oneok Partners’ entry into the crude transport business (see Shale Daily, April 10).
“While we are disappointed with the results of the open season, we remain committed to serving Williston Basin producers for their natural gas, natural gas liquids and crude oil infrastructure needs,” Spencer said. “We still believe the Bakken Crude Express has a competitive advantage over other competing projects due to its proximity to the route of our Bakken NGL Pipeline currently under construction and other Oneok Partners natural gas liquids pipeline corridors.”
Spencer said Oneok Partners still has about $4.5 billion of announced natural gas and NGL projects under way, some in the Bakken Shale.Additionally, the partnership has a $2 billion-plus backlog of unannounced growth projects, he said.
The Bakken Crude Express Pipeline would have been a 1,300-mile, crude oil pipeline with the capacity to transport 200,000 b/d of light sweet crude from multiple points in the Williston Basin in the Bakken Shale in North Dakota and Montana to the crude oil market hub in Cushing, OK.
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