Bakken Pipeline System

As part of Enbridge’s overall strategy to improve market access and boost energy security, Enbridge Energy Partners, L.P. (EEP), has announced an agreement to acquire an equity interest in the Bakken Pipeline System.

As announced on Aug. 2, 2016, EEP and Marathon Petroleum Corporation (Marathon) have formed a new joint venture, which has entered into an agreement to acquire from an affiliate of Energy Transfer Partners, L.P. and Sunoco Logistics Partners, L.P. a 49 percent equity interest in the holding company that owns 75 percent of the Bakken Pipeline System.

Under that arrangement, EEP and Marathon would indirectly hold 75 percent and 25 percent, respectively, of the joint venture’s 49 percent interest in the holding company of the Bakken Pipeline System. The purchase price of EEP’s effective 27.6 percent interest in the Bakken Pipeline System is US$1.5 billion.

The Bakken Pipeline System consists of two projects—the Dakota Access Pipeline (DAPL), and the Energy Transfer Crude Oil Pipeline (ETCOP).

The acquisition extends the reach of Enbridge’s existing crude oil and liquids pipeline network, and fulfills key strategic priorities for Enbridge:

  • It will provide an important link for producers in the prolific Bakken region to refining markets in the U.S. Midwest and the U.S. Gulf Coast; and
  • It has the potential to provide improved market access for Enbridge’s customers by establishing a new pipeline path to the U.S. Gulf Coast—via Enbridge’s mainline system; via the newly completed Southern Access Extension pipeline from Pontiac, IL, to Patoka, IL; and via ETCOP.

Closing of the transaction is subject to certain conditions, and will occur once all of the closing conditions are met, currently anticipated to occur in the fourth quarter of 2016.

Dakota Access Pipeline (DAPL) Project
The Dakota Access Pipeline, a new 30-inch-diameter pipeline, will originate from six locations in the Bakken/Three Forks production area of North Dakota, and travel about 1,172 miles to market centers in Patoka, IL.

DAPL is expected to initially deliver 470,000 barrels per day (bpd) of crude oil, with potential for expansion to 570,000 bpd.

Construction of terminals began in January 2016. Mainline pipeline construction began in May 2016.

Find out more about the DAPL project.

Energy Transfer Crude Oil Pipeline (ETCOP) Project
ETCOP, a converted natural gas pipeline, travels from Patoka, IL, to the Sunoco Terminal in Nederland, TX. Formerly one of the Trunkline pipelines, the ETCOP line consists of 62 miles of new 30-inch-diameter pipe, 686 miles of converted 30-inch-diameter pipe, and 40 miles of converted 24-inch-diameter pipe.

Find out more about the ETCOP project.

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Project overview:

  • Type: Crude oil and liquids pipeline
  • Status: Under construction
  • Length: 1,172 miles (DAPL); 788 miles (ETCOP)
  • Expected in-service date: 2016 year-end
  • Expected initial capacity: 470,000 bpd (DAPL); 470,000 bpd (ETCOP)
  • Expected to transport: Crude oil