Bakken Oil Pipeline Gets Board Approval

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Energy Transfer Partners LP (ETP) announced that its Board of Directors has approved building an approximate 1,100 mile crude oil pipeline (Bakken Pipeline) to transport crude supply from strategic receipt points in the Bakken/Three Forks production area in North Dakota to Patoka, IL, where the Bakken Pipeline will interconnect with Energy Transfer’s existing 30-inch diameter Trunkline Pipeline, which is being converted from natural gas service to crude transportation service. From Patoka, shippers will be able to access multiple markets, including Midwest markets and East Coast markets by rail as well as the Gulf Coast, via Trunkline, to the Nederland, TX crude oil terminal facility of Sunoco Logistics Partners LP. Additionally, Energy Transfer will develop a rail terminal facility in Illinois to access East Coast refineries.
  ETP has secured multiple long-term binding contractual commitments from shippers sufficient to fully support the construction of a 30-inch pipeline to Patoka. The 30-inch diameter pipeline will initially provide 320,000 bpd of capacity, and ETP could increase the capacity of the Bakken Pipeline based on additional customer demand. ETP has already begun the process of ordering steel and negotiating construction contracts for the Bakken Pipeline, and ETP expects to have the Bakken Pipeline built and in service, and the Trunkline crude oil conversion project completed and in service, by the end of 2016. ETP is in discussions with SXL regarding a potentially significant equity participation by SXL.