Commercial

250,000-Barrel Per Day Capacity Oil Terminal | McKenzie County, ND
Project CAPEX: $95 million. Project managed by David McKenzie.

North Dakota

North Dakota Oil Terminals Project

Overview

Two large oil terminal projects were developed in western North Dakota, strategically located near Keene and Palermo. Together, the facilities were designed to handle a throughput capacity of 250,000 barrels per day, serving as a critical hub for crude oil produced in McKenzie County.

The primary function of the terminals was to facilitate efficient transportation of crude oil from the rapidly developing Bakken oil fields and to generate sustained midstream revenue.

Infrastructure & Engineering

• Pipeline: An 85-mile pipeline was constructed to interconnect the Keene and Palermo plants, crossing an Indian reservation.

• Construction Challenges:

• Harsh North Dakota winter conditions with extreme cold.

• Large project workforce, including up to 80 welders on site at one time, to manage high volumes of welding and steel work.

• Facilities: Each terminal included tank storage, pumping infrastructure, and loading/unloading systems to manage high-volume crude transfers.

Stakeholders

• Funding Partners:

• Paradigm Midstream

• Phillips 66

• Both entities collaborated to provide capital, operational oversight, and integration into the regional midstream network.

Key Highlights

• Supported the rapid growth of oil production in the Bakken Formation.

• Delivered scalable midstream infrastructure to ensure crude takeaway capacity.

• Required advanced project management to coordinate labor, logistics, and regulatory/environmental compliance in difficult working conditions.


Hear From Our Clients

W. Criss Doss III


“David has done a great job for us in managing the construction of two oil terminal projects for us totaling $95,000,000 in Capex as a Consulting Engineer.

Project was completed on budget, on time and safely.”

Josh Walter


“David McKenzie is a first class builder. His engineering background truly helps your vision come to life. David takes pride in doing everything the right way, all of his work is done soundly and safely. He does not cut corners.”

Andrew Bruce


“David built my house. I trusted him and the best compliment I could give here is that if I had to build again right now, he’d be the only person I’d hire. A super talented engineer, but more importantly, someone I can trust with one of the most important projects in your life.”

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