Posted 9/22/15 (Tue)
By Kevin Killough
Despite falling commodity prices, infrastructure to support the oil industry continues to be constructed in preparation for ongoing demand.
The 1,100-mile Dakota Access Pipeline will begin the first phases of construction in January. This initial construction will include six crude oil-loading terminals and pump stations.
“We continue to move forward,” said Vicki Granado, media relations contact for Energy Transfer, the company building the pipeline.
One of these facilities, the 21-acre Ramberg terminal, will be located about eight miles south of Tioga. It will have three storage tanks ranging in capacity from 100,000 to 200,000 barrels.
The other terminals are located in Trenton, Stanley, Epping, Watford City, and Johnson Corner.
This first phase will cost an estimated $463 million of the entire $3.9 billion pipeline, which will run from Stanley to Patoka, Ill., when complete.
Granado said some parts of the larger project are still going through the permitting process.
The pipeline will carry 450,000 barrels per day through a 30-inch pipeline. The company is expecting capacity can be increased to 570,000 barrels per day in the future.
Matrix Service Co. of Tulsa, Okla. is the contractor for the construction of the North Dakota terminals.
The six terminals will be connected by a pipeline starting in Stanley and going to Ramberg, Epping, Trenton, Watford City, and finally Johnson Corner.
The entire North Dakota capital investment, including the six terminals, is projected to be $1.4 billion.
This will bring 2,000 to 4,000 construction jobs and 12 to 15 permanent jobs after completion.
The project is following trends in demand for pipeline capacity, as oil companies seek more alternatives to rail transport of crude.
Production rates have remained fairly steady through 2015, but the state saw a rapid switch to pipeline transport this summer. Since December the amount of crude transported by rail has fallen 25 percent.