August 28, 2015 [OPIS] - Matrix Service Company, a Tulsa-based engineering and construction company, said on Thursday that its subsidiary, Matrix Service Inc., has been awarded the engineering, procurement and construction of the six gathering terminals for the Dakota Access Pipeline (DAP) by Dakota Access LLC, a subsidiary of Energy Transfer Partners.
The pipeline will deliver light sweet crude from the Bakken and Three Forks production areas in North Dakota to Patoka, Ill. Terminals are planned for Stanley, Ramberg, Epping, Trenton, Watford City and Johnson Corner, all in North Dakota.
The projects, which were previously announced as a key underpinning to fiscal year 2016 guidance provided in early July, have an estimated cumulative value of $330 million with each terminal having a working capacity ranging from 200,000 to 600,000 bbl.
Engineering on the project will begin immediately, with field construction on all six terminals expected to begin in January 2016 and be complete by late 2016.
DAP is expected to deliver in excess of 450,000 b/d of crude oil from the Bakken/Three Forks production area in North Dakota to points east and south via pipeline and unit train. The pipeline increases access to Bakken for refineries in the Midwest and the East Coast, as well as those on the Gulf Coast through an interconnection in Patoka, Ill., with Energy Transfer Crude Oil Pipeline (ETCOP).
ETCOP will provide crude oil transportation service from the Midwest to the Sunoco Logistics and Phillips 66 storage terminals in Nederland, Texas.
In October 2014, Phillips 66 took up a 25% ownership interest in both the Dakota Access Pipeline (DAPL) and ETCOP, shouldering its proportionate share of construction costs. Energy Transfer will hold the remaining interest shares and operate both systems.
The estimated in-service date for the pipeline systems remains fourth quarter 2016.
