Dakota oil pipeline expansion completed: Update

Market: Crude oil
03/08/21

Adds Energy Transfer comments from earnings call

An expansion of Energy Transfer's 570,000 b/d Dakota Access crude pipeline (DAPL) is complete, adding takeaway capacity out of the Bakken shale.

The capacity on DAPL has been increased by 180,000 b/d to 750,000 b/d, Energy Transfer said today.

There has been a "significant increase" for August nominations as minimum volume commitments on the expanded DAPL capacity kicked in at the start of the month, Energy Transfer said.

The company has said previously that it plans to expand DAPL to as much as 1.1mn b/d by adding pump stations. Other partners in the Bakken system include Enbridge and Marathon Petroleum's midstream affiliate, MPLX.

The expansion will include the entire Bakken system which includes DAPL from the Bakken shale to Patoka, Illinois, and the connecting Energy Transfer Crude Oil pipeline (ETCOP) to the US Gulf coast. The expansion does not require any construction on the mainline or building new pipeline segments.

Earlier today, a partner in the Bakken system, Phillips 66 Partners said that the Bakken optimization project "continues to progress with the next phase of incremental capacity commencing service in August."

The increased capacity is supported by minimum volume commitments from long-term contracts, Phillips 66 Partners said.

A US judge in June closed out a long-running lawsuit that sought to halt operations of DAPL, two months after ruling the pipeline could remain in service while the government prepares a new environmental review.

US district court judge James Boasberg dismissed the rest of a lawsuit filed by Native American tribes led by the Standing Rock Sioux who oppose the pipeline. The order brought an end to a high-profile case that attracted national attention because of its potential to shut a major conduit of Bakken crude to the US midcontinent and Gulf coast.

Energy Transfer said today that it continues to cooperate with the Army Corps of Engineers on the new DAPL environmental review.

The initial startup of DAPL was delayed for months in 2016 and 2017 amid large protests and regulatory delays. Since its startup in June 2017, the line has been expanded amid record-high North Dakota production prior to the Covid-19 pandemic.

By Eunice Bridges

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17/04/25

Risks rising for possible recession in Mexico: Analysts

Mexico City, 17 April (Argus) — The Mexican finance executive association (IMEF) lowered its 2025 GDP growth forecast for a second consecutive month in its April survey, citing a rising risk of recession on US-Mexico trade tensions. In its April survey, growth expectations for 2025 fell to 0.2pc, down from 0.6pc in March and 1pc in February. Nine of the 43 respondents projected negative growth — up from four in March, citing rising exposure to US tariffs that now affect "roughly half" of Mexico's exports. The group warned that the risk of recession will continue to rise until tariff negotiations are resolved, with the possibility of a US recession compounding the problem. As such, IMEF expects a contraction in the first quarter with high odds of continued negative growth in the second quarter — meeting one common definition of recession as two straight quarters of contraction. Mexico's economy decelerated in the fourth quarter of 2024 to an annualized rate of 0.5pc from 1.7pc the previous quarter, the slowest expansion since the first quarter of 2021, according to statistics agency data. Mexico's statistics agency Inegi will release its first estimate for first quarter GDP growth on April 30. "A recession is now very likely," said IMEF's director of economic studies Victor Herrera. "Some sectors, like construction, are already struggling — and it's just a matter of time before it spreads." The severity of the downturn will depend on how quickly trade tensions ease and whether the US-Mexico-Canada (USMCA) free trade agreement is successfully revised, Herrera added. But the outlook remains uncertain, with mixed signals this week — including a possible pause on auto tariffs and fresh warnings of new tariffs on key food exports like tomatoes. IMEF also trimmed its 2026 GDP forecast to 1.5pc from 1.6pc, citing persistent tariff uncertainty. Its 2025 formal job creation estimate dropped to 220,000 from 280,000 in March. The group slightly lowered its 2025 inflation forecast to 3.8pc from 3.9pc, noting current consumer price index should allow the central bank to continue the current rate cut cycle to lower its target interest rate to 8pc by year-end from 9pc. IMEF expects the peso to end the year at Ps20.90/$1, slightly stronger than the Ps21/$1 forecast in March. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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India's ONGC wins 15 blocks in upstream oil, gas bid

17/04/25

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17/04/25

India's ONGC wins 15 blocks in upstream oil, gas bid

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Iran says uranium enrichment 'not up for negotiation'

16/04/25

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16/04/25

Iran says uranium enrichment 'not up for negotiation'

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Opec+ overproducers issue new compensation plans

16/04/25

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16/04/25

Opec+ overproducers issue new compensation plans

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IEA slashes 2025 global refinery runs growth forecast

15/04/25

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15/04/25

IEA slashes 2025 global refinery runs growth forecast

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