U.S. Midwest Home to $3.7 Billion in Oil & Gas Pipeline Kickoffs for Rest of 2018

Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. Midwest region can't begin to rival the Southwest or Northeast for projects in the Oil & Gas Pipeline Industry. But growing demand in the area for energy transportation--particularly from the Bakken Shale and Canada's oil sands--have amounted to some solid investments. Industrial Info is tracking more than $3.7 billion in pipeline-related project kickoffs in the U.S. Midwest region in the second half of 2018, about two-thirds of which are in Minnesota and North Dakota.

The U.S. Midwest region includes Iowa, Kansas, Minnesota, Montana, Nebraska, North Dakota and South Dakota.

Click on the image at right for a graph detailing Oil & Gas Pipeline Industry kickoffs in the U.S. Midwest in the second half of 2018, by state.

One of the most widely anticipated pipeline projects in the region is Enbridge Incorporated's (NYSE:ENB) (Calgary, Alberta) $1.35 billion segment of the Line 3 Crude Oil Pipeline replacement project in Minnesota. The full, $7 billion program seeks to replace about 1,200 miles of the existing Line 3, which runs from Hardisty, Alberta, to Superior, Wisconsin, with new pipeline and associated facilities; the Minnesota segment will be lengthened from 285 miles to 338 miles, with a capacity for 830,000 barrels per day (BBL/d) of light crude, heavy crude and synthetic crude oil.

Enbridge is awaiting a ruling from Minnesota's Public Utilities Commission on the Hardisty line's new pathway. Last month, Chief Executive Officer Al Monaco said he was optimistic that the company will secure its preferred route, despite a contrary recommendation from an administrative law judge. For more information, see project report and May 14, 2018, article - Enbridge Hopes to See Preferred Route for Line 3 Replacement Chosen in Minnesota.

Also in Minnesota, Enbridge is at work on $480 million in pump station projects related to the Line 3 program:

• $60 million pump station in Backus, Minnesota; see project report
• $60 million pump station near Cromwell, Minnesota; see project report
• $60 million in pump station additions in Clearbrook, Minnesota; see project report
• $60 million in pump station additions in Plummer, Minnesota; see project report
• $60 million in pump station additions in Viking, Minnesota; see project report
• $60 million in pump station additions in Donaldson, Minnesota; see project report
• $60 million in pump station additions in Palisade, Minnesota; see project report
• $60 million in pump station additions in Park Rapids, Minnesota; see project report

A 12-mile, $168 million Line 3 segment in North Dakota also is being overhauled, and Enbridge is planning $60 million in pump station additions in Joliette, North Dakota. For more information, see Industrial Info's project reports on North Dakota's Line 3 segment and pump station additions.

The Peace Garden State is home to a similar, but separate, program: Cenex Harvest States Incorporated's (Inner Grove Heights, Minnesota) $135 million pipeline replacement from Sidney, Montana, to Minot, North Dakota, which involves laying 181.5 miles of pipe to carry up to 38,000 BBL/d of refined products. For more information, see Industrial Info's project report.

Farther south, ONEOK Incorporated (NYSE:OKE) (Tulsa, Oklahoma) is optimistic that it will begin work before the end of the year on the Elk Creek NGL Pipeline, which includes a $250 million segment from McDonald, Kansas, to Bushton, Kansas. The segment will carry up to 240,000 BBL/d of natural gas liquids (NGL). ONEOK also is planning $30 million in pump station additions in McDonald. For more information, see Industrial Info's project reports on the Elk Creek segment and pump station, and May 3, 2018, article - ONEOK Readies for Major Growth Projects This Year.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.