Enbridge Partners announced it has reached an agreement with Marathon Petroleum to become an anchor shipper on the Sandpiper Pipeline.
The Sandpiper Pipeline is a 225,000 b/d oil pipeline that will run 375 miles from Beaver Lodge, North Dakota, to Clearbrook, Minnesota. The project also includes a 30-inch, 233-mile pipeline extension from Clearbrook, Minnesota, to Superior, Wisconsin.
Marathon will fund 37.5% of the pipeline and gain a 27% interest in Enbridge's North Dakota System. The project has an estimated cost of $2.6 billion and is expected in service in the first quarter of 2016.
“The Sandpiper Project provides much needed pipeline capacity to enable rapidly growing Bakken crude oil production.......” said Stephen J. Wuori, president. “We are delighted to welcome Marathon Petroleum as both a committed shipper and a partner. Their shipping commitment demonstrates the economic attractiveness of establishing a low-cost reliable pipeline solution for Bakken producers to access the premium North American markets for light crude oil.”
An open season for the pipeline starts at 12 pm MST on November 26, 2013 and ends at 5 pm on January 24, 2014.
Read the full press release at enbridgepartners.com