Enbridge plans a US$ 2.5 billion oil pipeline across northern Minnesota

Canadian pipeline builder Enbridge has announced its plans to build a new US$ 2.5 billion oil pipeline across northern Minnesota. The company is set to file their application for permission this week.

In March, the US Federal Energy Regulatory Commission rejected the company’s initial proposal after refiners complained about planned surcharges for moving oil on the conduit.

Sandpiper pipeline project
The Sandpiper pipeline project involves the construction of a 610 m interstate crude oil pipeline that will transport 225 000 bpd of North Dakota oil to Minnesota, and 375 000 bpd to Wisconsin.

The pipeline will originate at Enbridge’s Beaver Lodge Station, North Dakota. Carrying oil to an existing terminal owned by an Enbridge affiliate in Superior, Wisconsin, the pipeline is crucial to the web of pipelines that is currently struggling to keep up with supply. From Superior, the oil will be transported to refinery hubs in the US and eastern Canada.

Enbridge has proposed two routes for the new line, one that would follow its existing pipeline corridor. The Minnesota Public Utilities Commission (PUC) will spend the year weighing up different concerns for the routes.

Economic benefits
According to Enbridge, the Sandpiper pipeline project will provide a long-term, stable and reliable source of oil for the US and its refineries that supply the petroleum products that the company relies upon. The project will reduce reliance of oil imports, moving North America towards energy security and independence.

In addition, local communities along the Sandpiper route will benefit from taxes associated with the pipeline and related facilities during the life of the pipeline. According to Enbridge, “Communities will also enjoy potential high-paying construction and manufacturing jobs, increased retail sales, food and lodging purchases, and equipment and materials purchase during construction.”

If PUC agrees to the pipeline project, Enbridge estimates it would hire approximately 1500 temporary workers during construction.

Edited from various sources by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/29102013/enbridge_plans_a_billion_oil_pipeline_across_northern_minnesota/