Originally Posted by fourwinds
Interesting that an ethane pipeline will not be necessary, if a company like OneOK or Hess just separates the ethane from the methane straight from the gas pipeline.
Could see a small town like New Salem or Carrington really benefitting from their nearby gas pipelines. Still probably the Bismarck area or Jamestown gets it. That plant will need 4 or 5000 construction workers.
Gilliam the CEO of Badlands also mentioned that the Bakken could be the natural location of a world class refinery, (Mandan's Tesoro doesn't have a cracker for breaking down the heavy bits of oil and doesn't have much capacity) and that a polypropylene plant is also likely in ND.
The secret to refineries is that they are like Lay's Potato chips, you can't build just one.
If the environment makes building one new refinery profitable, then once that refinery is built, the environment is even better for building another.
Pipelines are the arteries for refineries. They tie them together and allow them to take the by products of one and integrate into the processes of another, and they allow them to move by products of upsets to another refinery or into the holding areas (In Texas and Louisiana these are great underground salt domes.) So that valuable chemicals can be saved rather than flared.
Finally, the contractors that are required for refineries can be more competitive. You will need environmental clean up contractors, and fire equipment repair contractors, and drug testing contractors, and so on. In a one off refinery, either these things have to be held internally, or the contractor has to get all of its income from the one refinery. When you have multiple refineries these costs can be shared.