Dakota Express

In the latter half of 2013 two very similar pipeline projects dueled it out with shippers in North Dakota to secure commitments to move crude out of the Bakken into the Midwest and points south. After addressing some concerns raised by federal regulators about tariff structure, the Enbridge and Marathon Petroleum Company Sandpiper proposal appears to be on track for approval. The rival Koch Dakota Express project was abruptly cancelled in January of this year. In pure capacity terms both these pipelines were “nice to have” not “need to have”. Today we complete our analysis of the fate of these competing projects.

Since the start of 2014 two competing pipeline projects designed to provide crude producers in North Dakota with additional takeaway capacity have met with very different fates. The first proposal – the Sandpiper project launched by Enbridge in late 2012 has completed a successful Open Season and petitioned federal regulators for approval of its tariff structure. Sponsor Koch Industries quietly canceled the second competing proposal – the Dakota Express pipeline first proposed in July 2013. Looking at rail and pipeline takeaway capacity versus crude production in North Dakota, both these pipelines are “nice to have” not “need to have”. Today we begin a two part analysis of these competing projects.