New Natural Gas Pipeline -- Tioga to Sherwood -- Bakken, North Dakota, USA

Updates

October 2, 2012: Don sent me a reminder about this company. Read about the company's operations here and the connection with the Bakken.

Original Post

Key point: 77-mile natural gas pipeline to be buried between Tioga and the Alliance mainline at Sherwood, North Dakota, on the Canadian border. Aux Sable Liquids Products has a natural gas liquids processing plant in the Sherwood area.

Link here.

Veresen Inc. and Enbridge Inc., joint owners of Alliance Pipeline, will proceed with development of a natural gas pipeline lateral and associated facilities to connect production from the Hess Tioga field processing plant in the Bakken region of North Dakota to the Alliance mainline near Sherwood, North Dakota.

Alliance has executed a precedent agreement with Hess Corporation as an anchor shipper on the Tioga Lateral pipeline, including matching capacity on the Alliance mainline. Aux Sable (owned by Veresen, Enbridge and Williams Partners, L.P.) and Hess have reached a concurrent agreement for the provision of NGL services. The pipeline is expected to be in service by the third quarter of 2013.

The 77-mile Tioga Lateral will facilitate movement of the high-energy, liquids-rich natural gas to natural gas liquid (NGL) processing facilities owned by Aux Sable Liquids Products at the terminus of the Alliance mainline system. The pipeline will have an initial design capacity of approximately 120 million cubic feet per day, which can be expanded based on shipper demand.

Tioga is in the heart of the Bakken, and correctly identifies itself as the "oil capital of North Dakota."  It is located on US Highway 2 east of Williston.

Sherwood, North Dakota, is on the Canadian border almost directly north of Minot.

I visited the Tioga facility about two weeks ago and have posted photos.

It looks like Tioga's 2,500 man-camp was an important initiative. Folks rightly complain about natural gas being flared off but without workers to put in the pipelines required to capture this natural gas it won't happen.

Without man-camps located where the work needs to be done, we will simply see more truck traffic. This is not rocket science.