Oil pipeline proposed for North Dakota

June 19, 2013 at 7:05 AM

WICHITA, Kan., June 19 (UPI) -- A pipeline company said it was examining shipper interest for a proposed pipeline to carry 250,000 barrels of oil per day from North Dakota.

Koch Pipeline Co., which has headquarters in Kansas, said it was in the early stages of examining interest for its proposed Dakota Express pipeline.

The pipeline would stretch from the Bakken oil deposit in North Dakota to Illinois and possibly connect to a network that would facilitate delivery to southern U.S. refineries. If built, the pipeline would start operations in 2016 with an initial capacity of 250,000 bpd.

The North Dakota Department of Mineral Resources said this week it was documenting increased oil production from its Bakken and Three Forks reserve areas. The U.S. Geological survey estimates the area contains more than 7 billion barrels of oil.

Energy companies operating in the region have turned to rail deliveries of oil because existing pipeline capacity is not enough for current production levels.

Koch said Tuesday it would start looking for binding commitments from potential shippers for the Bakken Express in mid-August.

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