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.
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