Oneok Partners LP will spend between USD 1.5 billion to USD 1.8 billion to build a 1300mi crude-oil pipeline between the Bakken Shale in North Dakota and the Cushing, Okla. crude-oil market hub. This will mark the company’s entry into the crude-oil transportation business.
The Bakken Crude Express Pipeline will have the capacity to transport 200,000 barrels per day. The move comes as Oneok Partners has been increasing its spending plans for the Bakken Shale region.
The latest project will “provide producers with efficient and reliable transportation of their product directly to one of the largest crude-oil market hubs in the U.S. said Oneok Partners President Terry K. Spencer. The pipeline utilizes the company’s core capabilities of transporting natural gas, natural gas liquids and refined petroleum products, Spencer added.
Construction is expected to begin in late 2013 or early 2014 and be completed by early 2015. The proposed pipeline route will also be well-positioned to transport crude-oil from the Niobrara Shale, Oneok said.