Energy Transfer held an open season in the fall of 2018 to obtain additional shipper commitments for capacity on the pipeline. The success of the open season highlighted the continued market demand and need for additional capacity out of the Bakken. To meet these needs, Energy Transfer is proposing to optimize the existing Dakota Access Pipeline to accommodate additional volumes of crude oil out of the Bakken production region of North Dakota.
The upgrade of the already permitted pipeline will help allow for further development in the Bakken, economic growth in North Dakota, and stabilization of costs for the industry and consumers.
Optimizing the Dakota Access Pipeline to accommodate increased volumes can easily be done by adding horsepower along with a few modifications and upgrades at pump stations along the existing line. There will be no mainline construction or additional pipe needed. The maximum operating pressure will not change.
The additional horsepower will be created by adding pumps at new and existing pump stations along the route. We will purchase property outright for three new mid-point pump stations; one each in North Dakota, South Dakota and Illinois. Pumping equipment at each new pump station will be isolated within closed structures for additional environmental protection and sound mitigation. Specific to North Dakota, this work will require between $30 and $40 million in upgrades.
We will work closely with local, state and federal authorities to ensure we remain in full compliance with all applicable regulatory and permit requirements.
Optimizing capacity will enable further development in the Bakken, which means more jobs and economic benefits for local communities. The installation of new pumps will generate sales tax revenue in each state, and the addition of three new pump stations will generate millions in property taxes that can be used by counties to support schools, hospitals, emergency services, and much more.
The pipeline has helped to improve the region’s drilling economics by lowering transportation costs for operators and is providing a safer means of transportation over truck or rail.
Open Season Process
The Open Season commenced at 12:00 p.m. (Central) on July 15, 2019. Bona fide potential shippers that desire to receive copies of the Open Season documents are required to execute a confidentiality agreement and may direct their requests for a confidentiality agreement to the following e-mail address: dlDA_ETCO@energytransfer.com.
To execute the confidentiality agreement, a potential shipper must:
- (A) Insert its name, jurisdiction of incorporation or formation, email address, and contact information.
- (B) Submit an executed copy via email to: dlDA_ETCO@energytransfer.com
Confidentiality agreements that have been altered or amended in any way by a potential shipper, other than by the insertion of the shipper’s name, jurisdiction of incorporation or formation, e-mail address and contact information, may not be accepted, in which case the Open Season documents will not be provided to that shipper.
Potential shippers with inquiries about the Open Season or this notice should send such inquiries to the following email address: dlDA_ETCO@energytransfer.com
Dakota Access Pipeline Moves North Dakota Bakken Oil
North Dakota produces nearly 1.5 million barrels of crude oil every day, with approximately half of that going through the Dakota Access pipeline.