Enbridge shelves Sandpiper for minority stake in Bakken Pipeline

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Enbridge shelves Sandpiper for minority stake in Bakken Pipeline

Mon, 11/07/2016 - 16:11
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Enbridge shelves Sandpiper for minority stake in Bakken Pipeline
Enbridge shelves Sandpiper for minority stake in Bakken Pipeline

Canadian energy company Enbridge announced last week that it is pulling out of the proposed midwestern Sandpiper pipeline, taking a $406-million loss

As the route passes through 28 rivers, including the Mississippi River headwaters, and lakes and wetlands that can’t be reached by nearby roads if a spill should occur, opposition to Sandpiper has grown, significantly raising the costs to Enbridge and ultimately convincing the company to withdraw from the project.

Nonetheless Mark Maki, the company's president, said in a statement the company's core pipeline business was performing well, with many of its existing networks regaining strength after May wildfires curbed some of the volumes leaving oil-rich Alberta.

"Deliveries on our Lakehead system [from Canada] have strengthened following the wildfires that impacted crude oil production in northeastern Alberta in May," he said in a statement. "With seasonal refinery turnarounds largely complete, deliveries are expected to remain strong through the end of the year with our heavy crude oil lines continuing to be over-subscribed."

Enbridge is seeking a 27.5 percent stake in the Bakken pipeline network, a deal which was supposed to close over a month ago. As with Sandpiper, environmental opposition to Bakken is causing interminable delays.

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