Enbridge Energy Partners Shelves Sandpiper Pipeline Project
September 01 2016 - 8:15PM
Dow Jones News
By Maria Armental
Canadian pipeline operator Enbridge Inc.'s Enbridge Energy
Partners LP is calling off for now plans for a 616-mile pipeline
that was intended to carry crude oil from North Dakota to
Wisconsin, citing the recent drop in oil prices.
Houston-based Enbridge Energy Partners said it had determined it
doesn't need the additional pipeline capacity and, therefore, was
putting the $2.6 billion Sandpiper project on hold until oil
production in North Dakota "recovers sufficiently to support
development of new pipeline capacity," which, it said, won't happen
within its current five-year plan based on current projections.
Separately, Enbridge Energy Partners said it had reached a
tentative agreement under which its general partner, Enbridge
Energy Co., would pay for three-quarters of its $1.5 billion
investment in the Bakken Pipeline System with Enbridge Energy
Partners financing the remaining $375 million through a combination
of debt and a new class of limited-partner units.
The system includes the Dakota Access Pipeline and the Energy
Transfer Crude Oil Pipeline.
MarEn, a joint venture with Marathon Petroleum Corp., would own
a 49% interest in an affiliate of Energy Transfer Partners and
Sunoco Logistics Partners LP, which in turn owns 75% of the Bakken
Pipeline, according to regulatory filings.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
September 01, 2016 20:00 ET (00:00 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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