UPDATE 1-Enterprise holds open season for Bakken to Cushing pipeline

Thu Sep 4, 2014 6:25pm EDT

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(Adds details on pipeline capacity, shale oil boom)

NEW YORK, Sept 4 (Reuters) - Enterprise Products Partners LP said on Thursday that it was holding an open season for a proposed pipeline that would be the first in directly moving shale oil from the Bakken formation to Cushing, Oklahoma.

The pipeline, which would have an initial capacity of some 340,000 barrels per day of crude oil and expandable to more than 700,000 bpd, should be fully operational by the third quarter of 2017, the company said.

It is expected to begin service in stages, starting with the Denver-Julesburg to Cushing portion in the fourth quarter of 2016.

The 1,200-mile (1,900-km) pipeline bringing oil from North Dakota down into Cushing would have the capability to transport up to six grades of crude oil and products, including Rockies condensate and processed condensate.

The pipeline is the first foray by Enterprise into North Dakota, home of the prolific Bakken oil fields. Despite a boom in the region, several pipeline projects have already failed.

In June, North Dakota Governor Jack Dalrymple said the state wants pipeline capacity to almost double to 1.4 million barrels of oil equivalent per day (boepd) by 2016, to curb the flaring of natural gas at wells beyond the pipeline system.

(Reporting By Catherine Ngai)

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