• 6 minutes Can the World Survive without Saudi Oil?
  • 10 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 15 minutes Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 1 hour U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 2 hours WTI @ $75.75, headed for $64 - 67
  • 47 mins Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom
  • 1 hour U.S. - Saudi Arabia: President Trump Says Saudi Arabia's King Wouldn't Survive "Two Weeks" Without U.S. Backing
  • 13 hours How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 44 mins EU to Splash Billions on Battery Factories
  • 13 hours UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 39 mins Iranian Sanctions - What Are The Facts?
  • 13 hours China Thirsty for Canadian Crude
  • 45 mins Superhumans
  • 15 hours Threat: Iran warns U.S, Israel to expect a 'devastating' revenge
  • 14 hours Shell, partners approve huge $31 billion LNG Canada project. How long till Canadian Federal government Environmentalates it into the ground?
  • 15 hours Two Koreas: U.N. Command Wrap Up First Talks On Disarming Border
Are Energy Majors Under Threat From Big Tech?

Are Energy Majors Under Threat From Big Tech?

Audi and Amazon have teamed…

Trump Threatens Iran’s Oil Clients

Trump Threatens Iran’s Oil Clients

Trump has directed yet another…

Enbridge Gives Up $2.6B Oil Pipeline

Pipeline North America

Forced by unfavorable market conditions and regulatory delays, Enbridge Energy will drop its planned pipeline project Sandpiper that was to transport crude oil from North Dakota’s Bakken formation through Minnesota to Wisconsin, where Enbridge operates a port terminal.

The project has so far cost Enbridge and its partner, refiner Marathon Petroleum, US$800 million. Its total cost was calculated at US$2.6 billion.

The project – like all new pipeline projects – became the target of strong environmental opposition as well as opposition from Native American tribes. It was this opposition that contributed significantly to the regulatory delays. The latest, which forced Enbridge to push forward the launch date for Sandpiper to 2019 before dropping it altogether was due to a pending environmental review.

The president of Enbridge Energy Partners, an affiliate of Enbridge Inc., Mark Maki, told media that the project could be revived at some point in the future, although in early August the company said it will purchase a stake in another crude oil transport project, the Bakken pipeline system. The stake will cost Enbridge US$1.5 billion, which it will pay via Enbridge Energy Partners to get a 27.6-percent interest in the project.

Marathon Petroleum is again partnering with Enbridge on this minority stake acquisition and will spend US$500 million on another 9.2 percent in the Bakken pipeline system. The system will carry crude from the North Dakota fields to refineries in Illinois and Texas, at a daily rate of 470,000 barrels.

The first part of the system is the controversial Dakota Access pipeline, subject of persistent protests from environmentalists and local Native American tribes, and the second is a 700-mile converted gas pipeline that will take the crude from Illinois to Texas.

The combined stake of Enbridge and Marathon Petroleum will make them the second-biggest shareholders in the Bakken pipeline system. The largest is a joint venture between Energy Transfer Partners and Sunoco, holding 38.25 percent.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News