Enbridge Announces Next Bakken Pipeline Expansion Program
August 24, 2010
Enbridge Energy Partners L.P. (EEP) and the Enbridge Income Fund (ENF), both entities of Enbridge, Inc., recently announced their intentions to expand their crude oil pipeline production capacity within the Bakken and Three Forks formations located in Montana and North Dakota as well as in Manitoba, Canada and Saskatchewan, Canada.
The increase in capacity is estimated to be 145,000 barrels per day (bpd), with further plans to cost-effectively maximize output to 325,000 bpd.
Enbridge’s projects within in the United States have an estimated cost of US$370 million, with the Canadian projects estimated at US$178.9 million.
EEP and ENF both have considerable long-term shipping contracts from Anchor Shippers in order to guarantee delivery of the increased output of natural gas. Enbridge is planning to provide other shippers with the opportunity to bid for additional shipping in the future.
The Bakken expansion is one of many which Enbridge has engaged in recently in order to respond to an increasing demand for crude oil transport within the region of the Bakken formation.
EEP’s North Dakota operation recently expanded by 51,000 barrels per day (bpd), to reach a total annual capacity of 161,500 bpd. ENF, which operates the Canadian Saskatchewan system, is currently expanding in 3 areas to reach an increase in capacity of 125,000 bpd. Total capacity following the expansion is estimated to be 230,000 bpd.
Enbridge Energy Partners, L.P. (www.enbridgepartners.com) owns and operates crude oil and natural gas transportation systems in the United States and Canada, with its principal crude oil system the largest in western Canada. Their systems provide 11% of total United States oil imports. Their deliveries to Ontario, Canada are 60% of the total oil delivered to refineries within that region. EEP delivers approximately 3 billion cubic feet of natural gas per day through its facilities in the United States.
The Enbridge Income Fund (www.enbridgeincomefund.com) is an unincorporated, open-ended trust designed to provide a stable, sustainable flow of distributable cash to its partners. It owns a 50% interest in the Canadian segment of the Alliance Pipeline, a 100% interest in Enbridge Pipelines (Saskatchewan) Inc., and a 50% interest in the NRGreen Power Limited Partnership. ENF also has investment percentages in three wind power projects located in western Canada.
Canada’s Enbridge Inc. (www.enbridge.com) operates the world’s longest crude oil and liquids transportation system, with its operations located in both Canada and the United States.
Additionally, Enbridge owns Canada’s largest natural gas distribution company, and provides distribution services in Ontario, Quebec, and New Brunswick, all in Canada, as well as in the state of New York, in the United States.
Enbridge is also expanding its natural gas transmission businesses, as well as its investment in renewable energy technologies, such as wind & solar, hybrid fuel cell development, and carbon dioxide sequestration.