Enbridge Wins Approval For Bakken Pipeline Project

Enbridge has won approval from the National energy board for its Bakken Pipeline Project Canada.

This project is designed to extend the existing pipeline that runs from Steelman to Berthold, North Dakota. An additional 124 kilometers of pipeline will be installed to transport crude oil from the new Bakken Pump Station to Enbridge’s existing pipeline at Cromer terminal, located near Cromer, MB. The new station will be located near the Enbridge Westspur Steelman Terminal.

In addition to adding the new pipeline, the scope of the project also includes installing the new pump station and all associated equipment, upgrades to utilities at the Steelman Terminal as well as those facilities now existing at Cromer Terminal.

The Bakken Pipeline Project Canada will help in the transport of the increasing supplies of light crude oil being removed from the Bakken Formation that is located over parts of North Dakota, Montana, Manitoba and Saskatchewan and sent to refinery markets in North America.

Once constructed, the pipeline will connect existing Enbridge facilities to the Enbridge main pipeline system that transports the products to the U.S. Midwest, Eastern Canada and Midcontinent.

Perry Schuldhaus, VP or regional pipeline development for Enbridge voiced his pleasure at the Board’s approval. According to Schuldhaus, this approval allows the company to move forward with one component of plans for further extensions in Canada as well as North Dakota.

The region offers great growth potential, and with the existing infrastructure, Enbridge is positioned to continue capturing opportunities from increased production.

Enbridge is making investments in other types of transportation as well. For example, on December 6, 2011, the company announced they would invest $145million to develop a rail facility near their station in Berthold, North Dakota.

This expansion will result in an 80,000 barrel per day increase in the takeway capacity. The station is becoming a critical access point for shippers and producers delivering oil found in the Bakken play.

As daily production in North Dakota is expected to reach 700,000 barrels daily by 2013 and one million barrels daily by 2015, Enbridge continues to focus on the demands in the options for transportation.