TULSA, Okla., April 10 (UPI) -- A $1.5 billion oil pipeline from North Dakota oil fields to the crude oil market hub in Cushing, Okla., will give producers more options, a company said.
Oklahoma natural gas company Oneok Partners announced plans to get into crude oil delivery business by unveiling plans for a 1,300-mile pipeline from oil deposits in North Dakota to the Cushing hub.
Oneok President Terry Spencer said the project could carry as much as 200,000 barrels of crude oil per day.
"As producers continue to aggressively develop crude oil from wells in the Bakken shale, more crude-oil pipeline takeaway capacity will be required," he said in a statement. "This proposed pipeline will provide producers with efficient and reliable transportation of their product directly to one of the largest crude-oil market hubs in the U.S."
Oneok said it was in negotiation for supply commitments and, based on potential agreements made before construction begins, the capacity of the pipeline could be increased.
Most of the suppliers tied to the oil pipeline, said Spencer, are from Oneok's current customer base.
Construction of the project could start by late 2013 and Oneok said it should be completed by 2015.
North Dakota is third-biggest oil producer in the United States.
