More Pipelines For The Bakken -- November 21, 2014

Phillips 66 Partners and Paradigm Energy Partners announce midstream logistics joint ventures: Co and Paradigm Energy Partners, LLC announce that they have executed agreements to form two joint ventures to develop midstream logistics infrastructure in North Dakota. Consisting of two previously announced projects, the Sacagawea Pipeline and Palermo Rail Terminal, the joint ventures are designed to enhance logistical options for crude oil transportation in the Bakken region.
From an earlier press release:

The Sacagawea Pipeline project is being developed to deliver crude oil from various points south of Lake Sacagawea in and around Johnson's Corner and Keene, in McKenzie County, North Dakota, to destinations with takeaway options for both rail and pipe in Palermo and Stanley, N.D.

SPC has received significant shipper interest in committing to the project, and based on such, anticipates receiving sufficient shipper commitments to proceed with the project.  All potential customers will have an equal opportunity to obtain capacity in the project and must submit binding commitments prior to the conclusion of the open season process.

For newbies: Johnson's Corner is at the intersection of state highways 23, 53, and 73, a few miles east of Watford City, one of the hottest areas in the Bakken. Palermo is on the other side (the north side) of the river, a few miles east of Stanley on US Highway 2.

An earlier post, same subject:

Phillips 66 will build a rail-loading facility permitted to handle up to 200,000 b/d of Bakken crude, the first time a US refiner has directly owned a North Dakota origination terminal. The company will also buy 500 rail cars, bringing its total fleet to 3,700.

"We have permits in hand in engineering to construct a new rail-loading facility. This is permitted up to 200,000 b/d. We'll probably do about 160,000 b/d" and build about 300,000 bl in storage.

I track CBR sites here. I cannot tell, for sure, from the article, but it sounds like this will be a new CBR terminal and not tapping into an existing one. But I could be wrong.

Both the pipeline and terminal should be operational in the first quarter of 2016.