Skip to main content

A new business deal puts the plan for a northern MN oil pipeline in limbo

  • Author:
  • Updated:
    Original:

A business deal announced Wednesday throws a blanket of uncertainty on Enbridge Energy's plan to build an oil pipeline across northern Minnesota.

Enbridge has long proposed building a line connecting the Bakken oil fields in North Dakota with a refinery in Superior, Wisconsin.

They call it the Sandpiper Pipeline and say it would be more than 600 miles long and cost more than $2.5 billion to build. Critics of Sandpiper say it would risk contaminating some of Minnesota's prime lakes, rivers, and wild ricing waters if there were a petroleum spill or leak.

The new wrinkle

Enbridge announced Wednesday it's buying a stake in a different line, the Bakken Pipeline System.

Enbridge is spending $1.5 billion to be a part-owner of what is essentially two new pipelines that are connected. One runs from the North Dakota oil patch to Illinois. The other continues south to the Texas Gulf Coast. Enbridge says both are expected to be open by the end of this year.

The companies leading the project say taking on new partners will help them pay off their construction loans, the Associated Press reports.

https://twitter.com/calgaryherald/status/760973626506145792

What does this mean for their Minnesota plans?

The one thing Enbridge was definitive about on Wednesday is that its partner in the Sandpiper project – Marathon Petroleum – is getting out of it. Marathon joined Enbridge in buying into the new Bakken line and the companies say as soon as that deal closes Marathon will excuse itself from the Sandpiper project.

Will Enbridge eventually do the same?

They're not saying right now. Enbridge says in Wednesday's statement the Bakken oil fields have "significant growth potential that will require additional pipeline capacity." They say they'll evaluate the Sandpiper project once their new acquisition is done.

Sandpiper critics happy

But if Enbridge isn't saying this is the end of Sandpiper, some of its Minnesota critics are saying it for them.

Friends of the Headwaters won a recent round in the court fight over Sandpiper. Blogger Aaron Brown reports that group's president said about Sandpiper "This project would have put many miles of wetlands, lakes, rivers, streams and wild rice waters at risk of a catastrophic oil spill, and if this project does not move forward, it is a victory for clean water in Minnesota.”

Scott Strand, who leads the Minnesota Center for Environmental Advocacy, tells the Star Tribune he thinks Sandpiper will be "put on a shelf." Strand says the amount of crude coming out of North Dakota is much less than a couple years ago and he thinks the new pipeline headed south will give Enbridge all the capacity it needs.

Next Up

Screen Shot 2022-05-18 at 6.16.34 PM

Suspect kills himself after shooting woman and baby at Fargo restaurant

The suspect was found dead in a stolen vehicle in Minnesota.

CK Kyle Kasio

Charges: Guest stabbed three men as they slept in Albert Lea

Investigators believe the suspect is related to all three victims.

Kandiyohi County Courthouse

2 charged for fentanyl overdose death of 19-year-old

The-19-year-old died from a fentanyl overdose last month.

storm, severe weather

Severe thunderstorm watch: Hail, 65 mph gusts, tornadoes possible

The watch is just north of the Twin Cities metro area.

Lake Minnetonka

The staggering rise of Minnesota's most famous lakes this spring

Imagine dumping Lake Minnetonka into Lake Superior 47 times.

Marijuana, cannabis

Minnesota Senate shoots down latest marijuana legalization attempt

The bill didn't receive the required votes for further consideration on Wednesday.

tree

Minneapolis wants to use $1M in federal cash to plant 200,000 trees

The goal is to have these trees planted by the year 2040.

Screen Shot 2022-05-18 at 12.54.22 PM

MOA theater to debut wrap-around, 270-degree movie screen

The new technology will expand the movie screen onto the side walls of the theater auditorium.

Trevor Scott May

Driver ejected in fatal Roseville crash identified as 30-year-old

The crash temporarily shutdown westbound Highway 36.

Related