Double H Pipeline

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  1. Kinder Morgan to acquire midstream position in Bakken shale play

    Kinder Morgan Inc. (NYSE: KMI) has a definitive agreement whereby KMI will acquire Hiland Partners from its founder, Harold Hamm, and certain Hamm family trusts, for a total purchase price of $3 billion, including the assumption of debt. Hiland’s assets, which are mostly fee based, consist of crude oil gathering and transportation pipelines and gas gathering and processing systems, primarily serving production from the Bakken formation in North Dakota and Montana. The transaction creates a midstream platform for KMI in the Bakken with a significant amount of acreage dedicated under long-term gathering agreements. Hiland’s customers include Continental Resources Inc. , Oasis Petroleum Inc. , XTO Energy Inc. , Whiting Petroleum Corp. , and Hess Corp. , among others. Hiland’s crude oil gathering systems, located in North Dakota and Montana, consist of 1,225 miles of gathering pipelines that deliver crude oil to the basin’s major takeaway pipelines and rail terminals. At closing, the crude oil gathering systems will have more than 1.8 million acres dedicated under long-term, fee-based agreements with major Bakken oil producers. At closing, Hiland’s largest oil gathering dedication will be with Continental, which has dedicated the majority of its Bakken acreage to Hiland’s gathering systems under a long-term agreement, including substantial acreage in McKenzie, Mountrail, and Williams counties in North Dakota. Hiland’s crude oil transportation pipeline, the Double H Pipeline, is a 485-mile pipeline that will transport crude oil from Hiland’s Dore Terminal in North Dakota to Guernsey, Wyoming, where Double H interconnects with Pony Express Pipeline for further transportation to Cushing, Oklahoma. Double H Pipeline is in the final stages of construction and is expected to begin service by the end of the month. Double H Pipeline will have an initial capacity of 84,000 barrels per day, with an expansion to 108,000 barrels per day in 2016. The pipeline has firm take-or-pay contracts for 60,000 barrels per day and is currently conducting an open season for additional commitments. Hiland’s gas gathering and processing systems in North Dakota and Montana consist of 1,800 miles of gathering pipelines and, upon completion of a plant expansion in 2015, 240 million cubic feet per day of gas processing capacity and 30,000 barrels per day of fractionation capacity. These systems process associated gas from oil production and have 3.7 million acres dedicated under long-term agreements with major Bakken oil producers. Hiland’s Midcontinent systems also gather and process gas in the Woodford shale and other areas of Oklahoma. Bracewell & Guiliani acted as legal counsel to KMI. UBS Securities LLC has provided a $2.025 billion bridge financing facility to KMI.

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    Thu, 22 Jan 2015

  2. Bakken crude transport options after the crash

    The combination of crashing crude prices and freight costs for long distance transport to refinery markets is tightening pressure on Bakken crude producer break-even economics. There is plenty of more expensive rail transportation capacity and not enough cheaper pipeline capacity to carry all ...

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    Thu, 5 Feb 2015

  3. Niobrara crude production takes off

    Crude production from the DJ and Powder River Basin plays in the Niobrara shale in Colorado and Wyoming is up 260% to 361 Mb/d since January 2012 and is expected to double again by the end of 2019. Takeaway capacity is expanding but is complicated by crude streams travelling through the region from ...

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    Thu, 2 Oct 2014

  4. $11.5m UK power station gets go-ahead

    An on-site biomass CHP plant in the UK has been given the all clear to begin construction.

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    Wed, 6 Jun 2012