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FERC approves sandpiper pipeline tariff structure

, Shale Plays Media

Natural Gas Intelligence reported today that Enbridge was given the green light for the sandpiper project. This pipeline will provide many Bakken crude producers easier access to downstream markets.

The 610 mile pipeline will be 24 inches in diameter and start from Beaver Lodge, just south of Tioga, ND and run to Clearbrook, MN. There will then be a connected 30 inches in diameter pipeline running from Clearbrook to Superior Wisconson. The Sandpiper would increase light crude pipeline transport from the Bakken by 225,000 barrels a day. Along with the pipeline there will be new storage tanks, pumping units, and metering facilities constructed as they are deemed necessary. The pipeline is estimated to be completed sometime in 2016.

Marathon Petroleum Corp is the anchor shipper for the Sandpiper Pipeline.


Photo: Enbridge.com

Enbridge is the largest transporter of crude in Canada, and transports around 2.2 million barrels a day via pipelines.

804 spills have occurred on Enbridge pipelines between 1999 and 2010, around 161,475 barrels of crude oil was spilled into the environment during that time.

Related: Canadian town says ‘no’ to Enbridge pipeline in vote

The Kalamazoo River oil spill in Marshall, Michigan is one of the most commonly referenced Enbridge oil spills. It is considered “the largest inland oil spill in Midwest history”. 834,444 gallons of tar sands crude was spilled into the Tallmadge creek which connects to the Kalamazoo River in Marshall, Michigan. The cleanup of the spill is still not complete and has cost an estimated $36.7 million.

Enbridge has ensured that they will use high-quality steel with an anti-corrosion coating. There will be testing done as required by regulation laws, as well as a 24-hour pipeline monitoring system from Enbridge’s control center in Wisconsin, which has remote shut-down capabilities.

They also have $3 billion invested in renewable energy. With more than 1,800 mw of wind, solar, and geothermal power capacity, Enbridge is the largest solar energy generator and the second-largest wind energy generator in Canada.

The FERC is an independent agency that regulates transportation of electricity, gas, and oil.

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