Dakota Access Pipeline Begins Service Operations

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The Dakota Access Pipeline is now in service. Energy Transfer Partners LP announced June 1 that the pipeline, along with the Energy Transfer Crude Oil Pipeline (ETCO), collectively known as the Bakken Pipeline, have begun commercial service under the Committed Transportation Service Agreements through their respective pipeline systems.

The Bakken Pipeline, owned by Dakota Access LLC and Energy Transfer Crude Oil Co. LLC, respectively, is a 1,872-mile, mostly 30-in. pipeline system that transports domestically produced crude oil from the Bakken/Three Forks production areas in North Dakota to a storage and terminal hub outside Patoka, Illinois, as well as to additional terminals in Nederland, Texas. The pipeline system is a joint venture between Energy Transfer Partners with a 38.25 percent interest, MarEn Bakken Co. LLC with a 36.75 percent interest and Phillips 66 with a 25 percent interest. MarEn is an entity owned by MPLX LP (a Marathon company) and Enbridge Energy Partners LP.

RELATED: Army Corps Grants Easement to Complete Dakota Access Pipeline

The Dakota Access Pipeline (DAPL) and ETCO were developed at a combined cost of approximately $4.78 billion. The pipelines have commitments, including shipper flexibility and walk-up, for approximately 520,000 barrels per day (bpd). This is up from 470,000 bpd due to a successful supplemental open season held earlier this year that committed an additional 50,000 bpd. The combined system is expandable to a capacity of approximately 570,000 bpd. The pipeline will transport light, sweet crude oil from North Dakota to major refining markets.

The $3.8 billion Dakota Access project consists of approximately 1,172 miles of 30-in. diameter pipeline traversing North Dakota, South Dakota, Iowa and Illinois. Crude oil transported on DAPL originates at six terminal locations in the North Dakota counties of Mountrail, Williams and McKenzie. The pipeline delivers the crude oil to a hub outside of Patoka, Illinois where it can be delivered to the ETCO pipeline for delivery to the Gulf Coast, or can be transported via other pipelines to refining markets throughout the Midwest.

ETCO consists of more than 700 miles of mostly 30-in. converted natural gas pipeline from Patoka, Illinois, to Nederland, Texas, where the crude oil can be refined or further transported to additional refining markets.

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