Enbridge Energy Partners, L.P. (NYSE:EEP) ("Enbridge Partners" or "the Partnership") and Enbridge Income Fund ("the Fund") announced today that the Bakken Pipeline Expansion Project ("the Project"), part of Enbridge's Bakken Expansion Program, is now complete and in service. The Project, undertaken by the Partnership in the United States and the Fund in Canada, reversed and expanded an existing pipeline, running from Berthold, North Dakota, to Steelman, Saskatchewan, and constructed a new 16-inch pipeline from a new terminal near Steelman to the Enbridge Pipelines Inc. mainline terminal near Cromer, Manitoba.
The Project provides 145,000 barrels per day (bpd) of capacity for growing production from the Bakken and Three Forks formations located in Montana, North Dakota, Manitoba and Saskatchewan, of which 25,000 bpd was placed in service during the first quarter of 2012. Once on the Enbridge mainline, Bakken production will have access to the multiple markets accessible from the mainline and connected pipeline systems. Firm commitments totaling 100,000 bpd have been received from anchor shippers.
"We are pleased to bring this project into service on schedule and under budget," said Mark Maki, President of the Partnership. "By leveraging our extensive existing operations in the area, we were able to effectively respond to the needs of our customers and provide economical and attractive transportation takeaway options."
Production from the Bakken formation in the Williston Basin has grown from 200,000 bpd to over 700,000 bpd in the last five years with potential to expand to 1,200,000 bpd or more in the next six years.
"This is the third expansion project we have undertaken in the last five years to meet the needs of Saskatchewan producers and enable growing production from the Bakken region to access key U.S. markets," said John Whelen, President, Enbridge Income Fund Holdings Inc. "This latest expansion, which is predominately underwritten by take or pay contracts, represents another attractive and stable source of distributable cash flow for the Fund."