American Midstream Partners, LP (ticker: AMID) announced a binding open season for volume commitments from existing receipt points on AMID’s Bakken pipeline system to a newly constructed delivery point interconnecting into the Dakota Access Pipeline in Watford City. The Bakken system is an established FERC-regulated, crude oil transportation pipeline located in McKenzie County, North Dakota backed by a long-term acreage dedication with a key producer. American Midstream intends to expand its current Bakken system to have the capacity to accept over 40,000 barrels per day of crude oil from field receipt points and numerous local lease tank batteries through its truck facility south of Watford City for delivery into DAPL.
The new connection into DAPL is expected to commence service in August 2017. American Midstream also provides hydrogen sulfide treating in the Bakken system allowing customers to meet pipeline specifications for crude oil delivery thereby expanding customer service offerings and the competitive footprint of the system. Leveraging off the recent additions to the Partnership’s system and the new connection to DAPL, American Midstream will be able to deliver an incremental 20,000 barrels per day to market.
Open Season Process
During the binding open season, AMID intends to obtain long-term volume commitments for crude oil transportation to this newly constructed delivery point. Successful bidders will be awarded long-term pipeline transportation capacity to the DAPL delivery point.
The open season is scheduled to begin June 26, 2017 and end on July 17, 2017. Bona fide potential shippers that would like to receive copies of the open season documents must first execute a confidentiality agreement, a copy of which they can request from Philip Weigand. Upon execution of a confidentiality agreement, AMID will provide such potential shippers a form of Transportation Services Agreement (or a TSA amendment for existing shippers), and a proposed FERC tariff. During the open season, AMID will entertain comments, questions or proposed changes to the general terms and conditions of the proposed tariff and TSA. Interested parties will have the opportunity to execute committed agreements for crude oil transportation to the newly constructed delivery point. All bids must be submitted to AMID by 5:00 PM CST, on or before July 17, 2017.
