The proposed Elk Creek Pipeline may have the capability to move as much as 240,000 barrels per day of pure fuel liquids from a terminal close to Sidney, Montana, to Bushton, Kansas.
The pipeline will run adjoining to Oneok’s present Bakken NGL and Overland Move pipelines, that are working at full capability.
Terry Spencer, Oneok president and CEO, stated in a press release that a new pipeline is “crucial to assembly the wants of producers who’re growing manufacturing and are required to satisfy pure fuel seize targets within the Williston Basin.”
The $1.2 billion Elk Creek Pipeline won’t cross North Dakota however will hook up with present pipelines in northwest North Dakota. It is anticipated to be full by the top of 2019, however nonetheless wants regulatory approvals from federal, state and native businesses.
Justin Kringstad, director of the North Dakota Pipeline Authority, stated further pipelines are wanted to move rising volumes of pure fuel liquids, reminiscent of ethane, propane and butane.
Kringstad estimates that North Dakota produces greater than four hundred,000 barrels of pure fuel liquids per day. However on account of inadequate pipeline capability, about forty,000 to 60,000 barrels a day are transported by rail, he estimates.
Underneath Kringstad’s forecast, North Dakota pure fuel liquids manufacturing is projected to greater than double by the 2030s to between 800,000 and 1 million barrels per day.
“As we glance to the longer term on the progress alternatives for pure fuel liquids, there’s going to have to be further transportation options put in place,” Kringstad stated.
Oneok stated the Elk Creek Pipeline could possibly be expanded to move four hundred,000 barrels per day with further pump amenities. The pipeline, which can cross Montana, Wyoming, Colorado and Kansas, additionally will transport pure fuel liquids from the Rocky Mountain area.
The Elk Creek Pipeline would transport Y-grade pure fuel liquids to present Oneok amenities in Kansas. Meaning the pure fuel liquids are combined collectively for transportation and later separated into merchandise, similar to ethane and propane.
North Dakota oil business leaders are working to draw further investments in pure fuel infrastructure to scale back flaring. The business flared greater than 320 million cubic ft per day of pure fuel in October, the newest knowledge obtainable from the Division of Mineral Assets.
General, the business met its goal of capturing eighty five % of Bakken fuel produced in October, however eleven corporations fell brief. The fuel seize targets set…