JV Plans North Dakota Crude Line

July 2013, Vol. 240 No. 7

Paradigm Midstream and Dakota Plains Holdings, Inc. and joint-venture partner, Petroleum Transport Solutions, LLC, an indirect wholly owned subsidiary of World Fuel Services Corp., have an agreement that could lead to an exclusive pipeline transportation agreement to export crude from McKenzie and Dunn counties, ND.

The route for the initial pipeline will run from Johnson’s Corner in McKenzie County and tie into the Pioneer crude oil transloading facility owned by Dakota Plains and its partner in south Mountrail County in New Town. The pipeline will then run from the Pioneer facility to Enbridge’s Stanley Station located in north Mountrail County, where commercial agreements are being finalized to tie into Enbridge’s North Dakota pipeline system at Stanley, which connects to Enbridge’s Berthold rail facility and additional pipeline capacity downstream of Berthold.

The proposed pipeline provides producers with access to East Coast, West Coast and Gulf Coast rail markets as well as multiple pipeline and refinery markets at Clearbrook, MN the Upper Great Lakes, Cushing, the Midwest and the Gulf Coast. In addition, Paradigm Midstream and Dakota Plains are pursuing a new NGL transloading solution at the Pioneer facility.