Marathon commits to Sandpiper Project

Enbridge Energy Partners, L.P. has announced that Marathon Petroleum Corporation (MPC) will serve as an anchor shipper for the company's US$ 2.6 billion Sandpiper pipeline project, which will take crude oil from North Dakota's Bakken field to US refiners.

According to Enbridge, MPC will fund 37.5% of Sandpiper's construction cost in exchange for a 27% interest in Enbridge's North Dakota System when Sandpiper is placed into service.

Sandpiper Project

The Sandpiper Project is the next phase of crude oil pipeline expansion that will serve as a twin line to Enbridge's existing 210 000 bpd North Dakota System mainline, which transports the bulk of Canada's crude exports to Midwest refineries. It will add 250 000 bpd, running from Beaver Lodge, North Dakota to Clearbrook, Minnesota, and a 350 000 bpd line from Clearbrook to Superior Wisconsin.

When complete in 2016, Sandpiper will boost the capacity of Enbridge's North Dakota pipeline network to 580 000 bpd, as the company looks to accommodate rising oil production from the state.

Mike Palmer, Marathon's Senior Vice President said, "With growth in Bakken crude oil production, the Sandpiper Project will provide needed pipeline takeaway capacity for crude oil transportation out of the region...This project further strengthens our ability to transport Bakken crude oil by pipelines and benefits MPC by providing additional access to this resource at a competitive cost of transportation."

Light oil access programme

Sandpiper is one component of Enbridge's US$ 6.2 million light oil access programme. According to Enbridge, the programme "will collectively allow an additional 400 000 bpd of light crude oil from Western Canada, and from the Bakken formation in North Dakota, to access premium markets in Eastern Canada and the US Midwest."

Edited from various sources by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/26112013/marathon_commits_to_sandpiper_project/