Dakota Plains Holdings Inc., Wayzata, Minn., and Hiland Partners LP unit Hiland Crude LLC reported signing an interconnection agreement that will link Dakota Plains’ Pioneer Rail terminal in New Town, ND, with Hiland’s Market Center gathering system crude oil pipeline network.
Construction for the final link—now under way—is expected to be commissioned by Oct. 31.
Hiland’s gathering system is the largest in the Bakken, the company says, extending through the heart of the field in Divide, Dunn, Mountrail, McKenzie, and Williams counties in North Dakota, as well as Richland and Roosevelt counties in Montana.
Hiland’s gathering system has multiple connection points into pipeline outlets and crude-by-rail terminals, with the Pioneer terminal being the only Canadian Pacific Railway origin.
The connection to the Pioneer terminal is expected to have an initial capacity of more than 15,000 b/d of oil and expandable to 60,000 b/d, the companies said.