From the SeekingAlpha.com transcript:
.... the
prolific Bakken Shale in the Williston Basin. (The presentation is linked here.)
When our projects that
we've announced in the Bakken are completed, we will have invested in
our gathering and processing segment almost $1.5 billion to construct
four new natural gas processing plants at a capacity of 100 million cubic
feet per day each. They are in North Dakota, the Garden Creek number
one and two plants [McKenzie County]. The Stateline's number one and two plants [are in the] Divide County gas gathering system. These projects together will
increase our current processing capacity in the Bakken Shale to
approximately 500 million cubic feet per day.
We are also
investing in new well connect, system expansions and upgrades to our
gathering and compression assets which are associated with these new
plant to get supplies to those processing facilities and those
investments are backed by percent or contracts with acreage dedications
and a fee-based component.
Talking more about the Bakken Shale, we are making major NGL
infrastructure investment in the Bakken as well, and those investments
are backed primarily by the NGL production from our existing and new
processing plants that I just talked about on the previous slide.
We
have begun construction on a 500-mile Bakken NGL pipeline that's going
to be in service during the first half of 2013, which will transport
unfractionated or raw NGLs to the Conway and Mont Belvieu market hubs.
It will utilize a pipeline. We already own a 50% ownership in, which is
our Overland Pass pipeline, and the NGLs will be fractionated at our
Williston fractionator, which is also in a process of being expanded.
One
of the key points I would like to make about the Bakken NGL pipeline is
that it will for the first time allow processing plant in the Bakken or
in the Williston Basin to recover and transport ethane which currently
is not possible.
In the Bakken, and we have to talk about the
crude oil, it is a prolific crude oil play with projection expected to
increased well over 1 million barrels per day within the next five
years, because of that growth crude oil takeaway capacity in general is
absolutely required for this area. In order to connect this additional
supply to the marketplace that's being developed, we've announced plans to build the crude oil pipeline to
bring light sweet oil -- and when I say sweet: low to no hydrogen sulfide crude
oil -- from the Bakken Shale to the crude oil hub in Cushing, Oklahoma. The
1,300 mile Bakken crude oil express pipeline will parallel more than
80% of current and planned NGL pipelines and it is expected to be in
service by early 2015.
Later this month, we expect to hold an open
season as we continue to negotiate with anchor shippers on the project.
For producers this new pipeline provides a reliable mode of
transportation at a lower cost versus other alternatives. It allows them
to increase their netbacks and receive the benefits of their high
quality crude oil, so that's the unique thing about this particular
pipeline is that it will focus on light-sweet crude, which too many of
those producers is an advantage. That way they can ensure when their
barrels get to Cushing, they have that same light-sweet barrel, which is
very important to them.
Not entirely unique. It is my understanding that Enbridge also limits light, sweet Bakken oil in their Bakken pipelines, and, of course, that's true also of oil shipped by rail.
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