DAPL Operator's Activity In Texas Will Positively Affect The Bakken -- November 16, 2019

Link here to The Williston Herald. Paywall, unfortunately. Archived.

Data points:

• the DAPL operator has extended the open season on Dakota Access just to accommodate the option to offer HFOTCO and the Houston Shipping Channel market to Energy Transfer's customers
• background:
• in September, 2019, Energy Transfer acquired SEMGROUP in a $5 billion deal (see this post)
• that acquisition included the completion of the Ted Collins pipeline in 2021
• the Ted Collins will  connect the dots between two of the nation’s largest oil terminals, one at the Houston Shipping Terminal, or HFOTCO, and the other in Nederland, Texas
• already there is more than one million barrels per day of existing crude oil capacity at the terminals
• the company plans to expand that to over two million barrels per day going forward
• the Ted Collins pipeline would start with an initial capacity of more than 500,000 barrels per day capacity, beginning in 2021
• the extended supplementary season for the Dakota Access pipeline won’t delay the planned expansion of the line
• the demand for shipping volumes on the line is very high. So high, that if the company could “snap its fingers” and have an additional 400,000 to 500,000 barrels per day in capacity, the company thinks it would likely be immediately filled
• then this, from the CEO:
• “Nothing really competes with Dakota Access,” Mackey said. “All of these (other) projects, when you look at the stacking of fees and where those markets are and the timing to get there, nothing really compares to a project that can deliver to the vast majority of the mid-continent refineries and then bring it down to the Gulf Coast to all the refineries in Texas and then through the Bayou Bridge get it to the St. James Markets.”
• company officials expect to ultimately expand the capacity of Dakota Access to 1.1 million barrels of Bakken crude oil per day
• background:
• this will be done in phases, with the first expansion beginning in mid-2020 with 30,000 barrels per day, pending successful completion of permitting for new compressor stations
• additional capacity, based on commitments in the supplementary binding season, will be brought into service by early 2021
• to accomplish this, Energy Transfer plans to build three compressor stations, one in North Dakota, one in South Dakota, and one in Illinois