Construction of the new 12in multi market pipeline with a capacity of 120,000 barrels per day is expected to begin in late 2012 and become operational in 2014.
Paradigm, Dakota Plains and joint-venture partner, Petroleum Transport Solutions, have signed an exclusive pipeline transportation agreement to export crude oil from McKenzie and Dunn counties.
The pipeline is expected to run from McKenzie County in North Dakota and tie into the Pioneer crude oil transloading facility, which is owned by Dakota Plains and its partner.
Paradigm’s new crude oil pipeline from there will extend to Enbridge’s Stanley Station located in north Mountrail County.
Paradigm Midstream founder Brian Manion said the pipeline will connect two most prolific areas of Bakken and offer alternative of any outbound infrastructure.
"This pipeline will open up premium crude markets to producers with limited optionality south of the Missouri River," Manion added.
The acquisition is expected to close during the second quarter of 2013, subject to customary closing conditions.
