Houston, 11 April (Argus) — Electric transmission and natural gas distribution company CenterPoint Energy has made its first entry into the crude sector, signing a long-term agreement to build a gathering system that will transport Bakken crude produced by ExxonMobil subsidiary XTO Energy.
“We're interested in expanding our product gathering capability and working outside our traditional footprint,” spokeswoman Alicia Dixon said.
CenterPoint will build a new 19,500 b/d pipeline gathering system, which will come on line by the fourth quarter of this year. That system will consist of an 8-inch diameter, 14-mile mainline that ties into various gathering lines. It will take oil from points in North Dakota's Dunn and McKenzie counties and transport it to Great Northern Gathering and Marketing's Watford terminal in McKenzie County.
The project also marks CenterPoint's first development in the prolific Bakken formation. The gas company is aiming to expand into liquids-rich basins, according to C. Gregory Harper, senior vice-president for CenterPoint Energy's midstream business.
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