Global Partners announces N. Dakota pipeline connection agreement

Global Partners LP, a Waltham company that operates oil terminals, said Tuesday that it has entered an agreement that should enable it to move even more crude oil from crude oil producing basins in North Dakota to markets on the East Coast.

In January alone, Global moved 100,000 barrels of oil a day from North Dakota to Albany by rail, a recent Globe story noted.

In today’s press release, Global Partners said it has executed a pipeline connection agreement with Tesoro Logistics.

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Under that agreement, Tesoro will build, own, and operate a new seven-mile pipeline that will link its Lignite, N.D., crude oil station to Global’s 100,000-barrel crude oil storage tank at Columbus, N.D. Crude oil is expected to begin flowing to the new Columbus-bound branch in the third quarter of 2013, enhancing the movement of crude from the mid-continent to Global’s destination assets on the East Coast.

“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 chief executive of Global Partners, said in a statement. “Our agreement with Tesoro Logistics is an important step toward that objective. The pipeline connection will tie our Columbus location directly to the Tesoro High Plains Pipeline System. 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. This agreement increases our efficiency to gather and move price-advantaged crude from the mid-continent to East Coast refining markets. Of the 738,000 barrels per day of North Dakota production, Global and its customers are moving approximately 120,000 barrels per day of that volume to high value destination markets.”

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