Kinder Morgan Considering Bakken Takeaway Expansion

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(P&GJ) — Another pipeline could soon be carrying more Bakken oil out of North Dakota.

Two major pipeline projects have already been announced for the Bakken region in the past month, and now Kinder Morgan is discussing an expansion of the Hiland Crude System. Hiland currently carries up to 88,000 bpd from North Dakota to Wyoming on the Double H Pipeline. Another pipeline, the Tallgrass Pony Express, then carries up to 375,000 bpd down to Oklahoma.

A spokeswomen for Kinder Morgan, Katherine Hill, told the Bismark Tribune that the company will evaluate expansion “based on the level of interest and volume commitments obtained.” The company launched a binding open season on the Hiland System at the end of June and said they would have more information after it closes  July 28.

Operators have been working to increase takeaway capacity from the Bakken as production in the basin continues to grow. In addition to two major new pipelines that were announced in June, Energy Transfer announced it will expand the Dakota Access Pipeline to carry over 1 MMbpd out of the Bakken.

Justin Kringstad, director of the North Dakota Pipeline Authority told the Bismark Tribune that True Companies also is proposing a new Bridger Expansion pipeline to add an additional 175,000 bpd of pipeline capacity out of the region.

Hill said Tallgrass may also consider expanding the Pony Express line.

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