Paradigm Energy expands North Dakota crude-oil footprint

Paradigm Energy Partners LLC announced yesterday that its Paradigm Midstream Services-ND LLC has finalized an agreement with a private company to construct a new gathering system for crude oil in North Dakota.

Under the proposed agreement, which is secured through an acreage dedication, the 23-mile gathering system will deliver 17,000 acres of production from the Ross Field in northern Mountrail County to Paradigm's joint venture rail terminal in Palermo, N.D., according to a company press release.

From Palermo, producers can access East and West coast markets via BNSF Railway Co., as well as downstream markets near Stanley, N.D., where Paradigm has existing pipeline connections.

The identity of the private company was not disclosed.

"This is a substantial contract with a strong producer in a new area for Paradigm and supports our abilities as a preferred service provider," said Paradigm Chief Executive Officer Troy Andrews.

The company is strategically focused on opportunities in the North Dakota counties of Mountrail, McKenzie and Dunn to enhance the value of its existing joint venture rail terminal, as well as the 91-mile Sacagawea Pipeline, which connects markets in Stanley, Ross, and Palermo, N.D. with markets in Johnson's Corner near Paradigm's storage terminal in Keene, N.D. The Sacagawea Pipeline and Keene Terminal are expected to be in service by the end of the third quarter, Paradigm officials said.

"Expansion of our crude oil service offerings and gathering asset infrastructure into northern Mountrail County is a natural extension of our initial asset footprint. This will be a significant area for Paradigm's future growth," said Andrews.