Sept 1 Enbridge Inc, Canada's largest
pipeline company, said it will withdraw its regulatory
applications pending with the Minnesota Public Utilities
Commission for the Sandpiper Pipeline Project.
The long-planned and often-delayed Sandpiper pipeline
project will be put on hold until crude oil production in North
Dakota recovers sufficiently to support the pipeline's capacity,
Enbridge said on Thursday in a statement.
This comes against the backdrop of a dramatic decline in oil
prices that has weighed on production in North Dakota's Bakken
The company also said its $1.5 billion investment or 27.6
percent stake in the Bakken pipeline system, will be jointly
funded 75 percent by Enbridge and 25 percent by subsidiary
Enbridge Energy Partners.
The Enbridge-Marathon Petroleum Corp joint venture
will pay $2 billion to Energy Transfer Partners and
Sunoco Logistics Partners for a 49 percent stake in the
holding company that owns 75 percent of the system.
Phillips 66 owns the remaining 25 percent of the
Bakken Pipeline System. Once in operation, Sunoco Logistics
will be the pipeline operator.
(Reporting by Vishaka George in Bengaluru; Editing by Andrew