Global Partners plans new Bakken crude oil transport, storage

New York (Platts)--11Jun2014/350 pm EDT/1950 GMT

US midstream company Global Partners LP announced plans Wednesday to build a new crude transportation system in the prolific Bakken shale, along with expanded North Dakota storage for the oil.

Meadowlark Midstream Company LLC has agreed to build, own and operate the the new system, which is expected in place by second-quarter 2015, Global said.

Plans include a new truck unloading station with 55,000 barrels of tankage on Meadowlark's Divide Gathering System, along with a 47-mile pipeline serving Global's crude storage at Basin Transload's Columbus rail loading terminal in Burke County, North Dakota. Crude delivered to the Columbus terminal has single line haul rail access to Global's Albany, New York, terminal and can also access other US rail-serviced terminals.

Global also said it has begun building an additional 176,000 barrels of tankage at the Columbus facility that will bring total capacity to 446,000 barrels.

"The crude oil transportation system being developed by Meadowlark further expands our gathering capabilities in the Bakken region, providing our customers with even greater access to refineries and other downstream distribution points on both the East and West Coasts," Global CEO Eric Slifka said in a statement.

On the East Coast, Global has a five-year, take-or-pay agreement with refiner Phillips 66 to buy 91 million barrels of Bakken crude barged from Albany to Linden.

--Beth Evans, beth.evans@platts.com
--Edited by Valarie Jackson, valarie.jackson@platts.com

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