Paradigm Midstream Announces New 70 Mile Pipeline Connecting McKenzie, Mountrail and Dunn Counties, N.D.
New Pipeline Project Adds Up To 120,000 Barrels Per Day Takeaway Capacity for Producers Throughout the Bakken Region, Scheduled to be On Line in 2014
DALLAS -- Paradigm Midstream, a Dallas-based company, today announced the planned construction of a new 12-inch multi-market pipeline in the heart of the Bakken Shale, a significant oil formation in the Williston Basin underlying parts of Montana, North Dakota, and Saskatchewan. Permitting is underway and construction is scheduled to begin in late 2013, with the pipeline expected to come on line in 2014, adding up to 120,000 barrels per day of crude oil take-away capacity from McKenzie County.
Paradigm Midstream and Dakota Plains Holdings, Inc. ("Dakota Plains" and "DAKP"), (OTCBB: DAKP) and joint-venture partner, Petroleum Transport Solutions, LLC, an indirect wholly owned subsidiary of World Fuel Services Corporation ("World Fuel Services"), (NYSE: INT) have entered into an agreement that could lead to an exclusive pipeline transportation agreement to export crude oil from McKenzie and Dunn counties. The route for the initial pipeline will run from Johnson's Corner, located in McKenzie County, and tie into the Pioneer crude oil transloading facility ("Pioneer") owned by Dakota Plains and its partner located in south Mountrail County in New Town, North Dakota. The pipeline will then run from the Pioneer facility to Enbridge's Stanley Station located in north Mountrail County, where commercial agreements are being finalized to tie into Enbridge's North Dakota pipeline system at Stanley, which connects to Enbridge's Berthold Rail facility and additional pipeline capacity downstream of Berthold, North Dakota.
"Logistical constraints and capacity issues associated with transporting crude and NGLs have long been a detriment to pricing for producers throughout the region," said Brian Manion, Paradigm Midstream Founder. "The Paradigm Midstream pipeline connects the two most prolific areas of the Bakken and offers the most optionality of any outbound infrastructure to date. This pipeline will open up premium crude markets to producers with limited optionality south of the Missouri River. In addition to the traditional options located at Johnson's Corner, producers will also have access to dedicated outbound markets, including two Class 1 Rail systems and Enbridge Pipeline at Stanley and Berthold. With flexible multiple market access, this is a game changer for producers throughout the Bakken Shale region."
The proposed pipeline offers producers flow assurance from McKenzie County and flexible premium market access through connections to the Canadian Pacific Line (Class 1 Rail) at the Pioneer facility and the Burlington Northern Santa Fe's Line (Class 1 Rail) at the Enbridge Berthold Rail facility, and to pipeline markets connected to the Enbridge pipeline system across the United States. The proposed pipeline uniquely provides producers with access to East Coast, West Coast and Gulf Coast rail markets, as well as multiple pipeline and refinery markets at Clearbrook, the Upper Great Lakes, Cushing, the Midwest and the Gulf Coast. In addition, Paradigm Midstream and Dakota Plains are pursuing a new state-of-the-art NGL transloading solution at the Pioneer facility.
Stonepeak Infrastructure Partners ("Stonepeak"), an independent investment firm specializing in North American infrastructure projects, has partnered with Paradigm Midstream to provide expertise, resources and capital for the pipeline and associated Bakken projects.
Craig McKenzie, Chairman and CEO of Dakota Plains said, "The Paradigm Midstream line supplying our Pioneer facility in New Town will provide the McKenzie County oil producer multiple transportation and market options. With Pioneer construction underway, we are expanding and transforming our New Town facility into an energy hub for the Bakken. The expansion includes two loop tracks each with the capacity to handle 120-car unit trains dedicated to crude oil, 180,000 barrels of crude oil storage, and will also potentially utilize existing rail infrastructure for the NGL's out-bound and in-bound commodities like sand, pipe and diesel. We are very excited to pursue this opportunity with Paradigm and see exceptional value in their gathering systems as we strive to maximize the utilization of our 192-acre terminal in New Town."
About Paradigm Midstream, LLC
Paradigm Midstream, LLC ("Paradigm") is a wholly owned subsidiary of Valor Petroleum, LLC, a privately held company based in Dallas,TX. focused on midstream and exploration & production assets. Through its subsidiaries, Valor Petroleum owns 400+ miles of pipeline in south Texas (Eagle Ford Shale) and North Dakota. Paradigm is soley focused on developing midstream assets in the Bakken Shale in North Dakota.
About Dakota Plains Holdings, Inc.
Dakota Plains Holdings, Inc. (OTC: DAKP) is a vertically-integrated, midstream energy company, which competes through its 50/50 joint ventures with affiliates of World Fuel Services Corporation (NYSE: INT) and Prairie Field Services, LLC, to provide customers with crude oil off take services that include marketing, transloading and trucking of crude oil and related products. Direct and indirect company assets include a proprietary trucking fleet, a transloading facility located in Mountrail County, North Dakota, which is centrally located within the Bakken formation, and 1,100 railroad tank cars.
About Stonepeak Infrastructure Partners
Stonepeak Infrastructure Partners is an independently owned, North American focused infrastructure investment firm. Stonepeak targets lower risk investments in the middle market, across the utilities, water, waste, energy, power, renewables and transportation sectors. Stonepeak is based in New York.
Contacts:
Jon McDonald
Business Development
Paradigm Midstream
214-373-4305
jon@infinitymidstream.com
Ray Thomas
Crude Oil Marketing
Dakota Plains & World Fuel Services
281-556-2537
rthomas@wfscorp.com
SOURCEÂ
Paradigm Midstream
