Enbridge partnership to make $145M ND investment
BISMARCK, N.D. (AP) -- Enbridge Energy Partners LP will make an additional $145 million investment in North Dakota to expand crude oil capacity and add a rail car loading facility to accommodate the additional volume, the company said Tuesday.
The Houston-based petroleum company, which operates oil pipelines, said that it will increase the holding capacity at the Berthold terminal by 80,000 barrels per day and add a double-loop unit-train facility, oil tanks and other terminal facilities next to its existing facilities.
Enbridge Energy Partners has contractual commitments for 70 percent of the rail loading capacity and anticipates it will soon finalize agreements for the remaining capacity.
Mark Maki, president of the partnership, said the project integrates high quality Bakken crude into Enbridge's expanding portfolio of pipeline projects that access premium markets across the U.S.
"Importantly, it allows producers and shippers the ability to continue to grow their business while Enbridge develops the next phase of pipeline expansions on the Enbridge North Dakota System," Maki said in a statement.
The project is expected to be ready by 2013.
The expansion adds to ongoing efforts by Enbridge to accommodate a boom in oil production in the region. Its Bakken Expansion Program announced in 2010 is aimed at increasing the company's transport capacity by another 145,000 barrels of oil per day from fields in Montana, North Dakota and southeast Saskatchewan.
The Bakken Expansion Program is expected to cost about $370 million for the U.S. projects and about $187 million for the Canadian projects, the company said.
Enbridge Energy Co. Inc., a subsidiary of Canada-based Enbridge Inc., has a 24 percent stake in Enbridge Energy Partners. Enbridge Energy Management holds a 14 percent interest in the partnership and manages its business.