Koch Pipeline Co. of Wichita, Kansas is seeking shipping commitments from oil producers for use of a proposed pipeline that would carry crude oil from western North Dakota's booming oil patch through the Twin Cities (Minneapolis-St. Paul’s) to Illinois.
Koch has launched a nonbinding 45 day open season to gauge interest from potential shippers. Oil shippers have until 14th August to solicit interest in the proposed pipeline.
North Dakota is booming
Last year, Oneok Partners shelved plans to build a 200 000 bpd pipeline from North Dakota to oil hub Cushing, Oklahoma, because of lack of interest.
Koch's proposal would bypass the bottlenecked Cushing and find a different route to refinery markets.
Dakota Express Pipeline
The Koch line, dubbed the Dakota Express Pipeline, would stretch from western North Dakota to Hartford, Illinois, and on to Patoka, Illinois. Koch said it intends to explore a connection at Patoka to the Eastern Gulf Crude Access Pipeline, which could deliver Bakken crude to refineries in Louisiana.
Reversing Wood River
The Dakota Express pipeline would include some new construction while also using Koch’s existing Wood River pipeline and Hartford terminal.
The 580 mile Wood River pipeline historically has transported crude oil from south to north, Illinois to Minnesota. The Dakota plan would reverse the flow. The proposed 250 000 bpd line would begin service in 2016.
Koch Pipeline is an indirect subsidiary of Koch Industries.
The cost of the pipeline was not disclosed.
Edited from various sources by Elizabeth Corner.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/03072013/koch_seeks_shipping_commitments_for_dakota_express_oil_pipeline_374/