Energy Transfer Equity LP, Energy Transfer Partners LP, and Phillips 66 have formed joint ventures to develop two crude oil pipelines that together will connect the Bakken/Three Forks play in North Dakota with the US Gulf Coast.
The Energy Transfer entities will hold 75% interests in each of the projects. Phillips 66 will own the remaining 25% interests and fund its share of construction.
One of the projects, Dakota Access LLC, involves new pipeline linking North Dakota with the hub at Patoka, Ill. Energy Transfer said contractual commitments so far indicate delivery capacity of more than 450,000 b/d of crude to various points in the Midwest.
The other project, Energy Transfer Crude Oil Co. LLC, will carry crude from an interconnection with the Dakota Access pipeline at Patoka to Nederland, Tex.
Commercial operations are expected to begin in fourth-quarter 2016.
Energy Transfer Partners launched a binding open season covering the system in March and a binding expansion open season in September to assess interest in lifting planned Dakota Access capacity from the original 320,000 b/d (OGJ Online, Mar. 10, 2014).