Midstream logistics and marketing company Global Partners has signed an agreement with Tesoro Logistics for a new crude oil pipeline.
Under the agreement, Tesoro Logistics' High Plains Pipeline System will build, own and operate the seven-mile pipeline which will connect its crude oil station in Lignite, North Dakota to Global's 100,000 barrel crude oil storage tank at the Basin Transload facility in Columbus, North Dakota.
The new pipeline is expected to come online in the third quarter of this year.
'Strategic expansion of our crude gathering system is a key component of the rail logistics strategy we are deploying across our assets in the mid-continent region,' Eric Slifka, president and CEO of Global Partners, said in a statement. 'The pipeline connection will tie our Columbus location directly to the Tesoro High Plains Pipeline System.'
He continues: 'The new branch will augment the volume of crude currently being transported by truck from the wellhead to our Columbus storage facility. The pipeline-connected gathering system will enhance the ratability of the Columbus terminal, and make the terminal available to a broader area of the region that may not be accessible by truck.'
Tesoro's High Plains Pipeline System includes around 45,000 bpd of truck-based crude oil gathering operation and approximately 700 miles of pipeline and related storage assets.