Costar Bakken LLC is conducting a binding open season for a proposed gathering system in McKenzie County, North Dakota. Upon the successful completion of the open season process, Costar will immediately begin construction of the pipeline and associated facilities. Initial operations are expected to begin in the fourth quarter of 2014.
The crude oil gathering system will have initial capacity of 40,000 bbl/d and will gather crude oil for delivery to the Tesoro Logistics pipeline northeast of Watford City, North Dakota. The Bakken project represents a significant expansion of the company's asset base, which includes current facilities in East Texas and the Permian Basin. Costar operates 100,000 Mcfd of gas processing capacity, 8,000 bpd of NGL fractionation capacity, 20,000 horsepower of compression, and 30,000 Mcfd of gas treating capacity.
Rod Donovan, vice president of business development for Costar, said, “The open season process and the construction of the gathering system will provide a diversification of our existing assets, and extends our ability to provide midstream crude oil and natural gas processing services to producers in the Bakken."