Hiland Crude LLC announced Nov. 19 the launch of an open season to solicit shipper commitments to expanded capacity of a new Bakken pipeline—the Double H crude oil transportation system.
Hiland's Double H crude oil transportation system is a 488-mile pipeline currently under construction that originates in the Bakken oil production areas near Dore, N.D., and Sydney, Mont., and terminates at Hiland's tankage near Guernsey, Wyo. An initial open season was held in 2012 for the base capacity.
Under the service offered, Hiland will deliver oil into connecting pipelines near Guernsey, Wyo. Interconnections near Guernsey will include the Tallgrass Pony Express Pipeline and various other proposed interconnections.
Initial start-up service on Double H pipeline will begin in late December and monthly nominations will be accepted for January.
The expansion will take place in phases with up to 45,000 barrels per day of interim capacity expected to be made available in the first half of 2015 to shippers committing volumes under this open season and any additional open seasons Hiland conducts relating to this expansion.
Full capacity expansion including the installation of additional pump facilities and pipe expansions as required is expected to be completed by December 2016.
The expansion project is not reliant upon any particular volume of new committed barrels. The final expansion design will be engineered based on the commitments received.
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