Uganda, a landlocked east African nation, needs the pipeline to transport the crude to international markets.
The proposed extension of the system will gather crude oil from origination points in Eddy and Lea Counties, New Mexico and deliver to destination points also in Eddy and Lea Counties, New Mexico.
Shares of North Dakota oil producers Oasis Petroleum, Continental Resources and Enerplus were trading higher after the U.S. Army Corps of Engineers said it would allow the Dakota Access pipeline to run.
The EIG-led group signed a lease and lease-back agreement with Aramco, acquiring the equity stake in the newly formed Aramco Oil Pipelines Co.
The move leaves the decision on shutting down the pipeline with the U.S. District Court of the District of Columbia.
Analysts said it was normal for LNG plants and gas pipelines supplying them to shut for maintenance in the spring when demand is low.
The market has been increasingly worried about a possible shutdown of the Dakota Access pipeline, which ships up to 570,000 barrels of North Dakota's crude oil production to the U.S. Midwest and Gulf Coast.
The acquisition a majority stake in Swift Current Energy is being made as part of a new strategic partnership between Buckeye and Nala Renewables.
While U.S. natural gas demand was mostly flat in 2020, Mexico’s grew. And it came from Texas. The outlook is that Mexico will be ordering more, including from the Eagle Ford’s underdeveloped gas fairway.
The roughly $1.6 billion project, which was proposed to support oil production growth in the Rockies and the Bakken shale regions, had been put on hold more than a year ago.