CHICAGO Oneok Pipeline
Partners LP has dropped plans to build a 1,300-mile pipeline,
citing a lack of interest by potential customers.
The Tulsa, Okla.-based energy
transmission company had said that the $1.8-billion Bakken
Crude Express Pipeline would have moved crude oil from the
Bakken Shales Williston Basin in North Dakota and Montana
to Cushing, Okla., a crude oil hub (
amm.com, April 10).
"Despite the robust outlook for
crude oil supply growth in the Williston Basin in the Bakken
Shale, we did not receive sufficient long-term commitments
under the terms we needed to construct the pipeline," Oneok
president Terry K. Spencer said in a statement.
Despite the setback, Oneok
remains committed to projects in the Williston Basin for
producers of oil, as well as natural gas and natural gas
liquids (NGLs), Spencer said. The company has between $4.2
billion and $4.8 billion of announced natural gas and NGL
projects under way, many in the Bakken Shale, as well as
another $2 billion in unannounced projects in its backlog.
Oneok still thinks the Bakken
Crude Express would have an advantage over competing projects
because of its proximity to the companys Bakken NGL
Pipeline, currently under construction, and other Oneok NGL
pipeline corridors, Spencer said.