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Koch ends plans for pipeline to deliver Bakken Oil to Illinois

BY LYNN DOAN

WICHITA (Bloomberg) -- Koch Pipeline called off plans to build a 250 Mbpd crude line to Illinois from North Dakota’s Bakken formation, where a shale boom has helped lift domestic production to the highest in a quarter century.

The indirect subsidiary of Koch Industries is no longer developing the so called Dakota Express pipeline, Jake Reint, a Koch spokesman, said by e-mail. He didn’t provide a reason for the decision. The Kansas based company was scheduled to begin a 45 day open season to gauge interest from potential shippers on the line in July.

“The non binding open season for the Dakota Express pipeline is no longer being pursued,” Reint, based in Wichita, said in the e-mail.

Hydraulic fracturing and horizontal drilling have helped producers reach shale deposits of oil across the middle of the United States from North Dakota to Texas, sending domestic output to the highest level since 1988. Koch proposed the Dakota Express line to help get the growing glut of oil to refiners in the United States Midwest. It was considering an extension to the Gulf Coast.

Koch would have used its existing Wood River pipeline, which has delivered crude to refineries in the Minneapolis St. Paul region, to complete the project, the company said in June. While the Wood River line “remains operable and in good condition,” Koch stopped accepting nominations on it in February 2013, Reint said.

01/22/2014

 

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