A proposal for the construction of a cross-border crude oil pipeline from Montana to Saskatchewan is working its way through the regulatory process.
A proposal for the construction of a cross-border crude oil pipeline from Montana to Saskatchewan is working its way through the regulatory process.
“The Bakken Pipeline Project is in the final approval stage, so a decision has not been made yet,” said Carole Léger-Kubeczek, communications officer with the National Energy Board (NEB).
“But, as soon as a decision is made, a press release will be issued along with a reason for the decision.”
The NEB held the oral part of the hearing process to consider an application submitted by Enbridge Bakken Pipeline Company Inc. for the proposed project in Canada on Oct. 4.
The application is for a pipeline that would enable crude oil, produced from the Bakken Shale and Three Forks formations, to be transported to the U.S. Midwest, mid-continent and eastern Canada. The formations are spread over Saskatchewan, Montana and North Dakota and are estimated to contain more than 5 billion barrels of recoverable oil.
“During this time, the panel must review all the evidence and then a decision will follow,” said Léger-Kubeczek. “The decision time varies depending on the circumstances.”
The NEB has identified a number of issues to be discussed, including the need for and the economic feasibility of the proposed facilities, the suitability of design of the proposed facilities, the potential environmental and socio-economic effects, and the method of toll and tariff regulation.
The Bakken Pipeline Project would consist of constructing and operating a new 406.4 millimetre outside diameter pipeline measuring 123.4 kilometres in length, from the new Bakken Pump Station near Steelman, Saskatchewan, to the Enbridge Cromer Terminal.
The proposed pipeline corridor will be alongside and contiguous to an existing Enbridge Westspur pipeline right-of-way and utility corridors for about 77.3 km of its entire length.
The remaining 46.1 km will require new non-contiguous right of way.
The associated facilities would include the construction of a new pump station, near the existing Enbridge Westspur Steelman Terminal, and a new receiver at the existing Enbridge Cromer Terminal.
Texas-based ENGlobal carried out the engineering and design studies for the project.
The firm was responsible for the development of land plots, creation of plant piping and instrumentation diagrams, and project tracking. ENGlobal was also responsible for preparing the construction agreement, material procurement and management of contractor invoices.
Enbridge Bakken is proposing to begin construction in the first half of 2012 and it would be completed in early 2013. The capital cost is estimated at about $180.1 million.
The Bakken Pipeline Project is divided into two parts,
Bakken Pipeline (Canada) and Bakken Pipeline (U.S.).
The American portion will include the extension of Enbridge’s Portal Link or Line 26 pipeline, by constructing two new pumping stations and replacing an 11-mile segment of the existing 12-inch pipeline between Kenaston and Lignite, North Dakota.
The proposed replacement section will be rerouted around the town of Lignite to the east and northeast, generally following an existing railroad right-of-way in the area.
The existing terminal and pumping station in Berthold, North Dakota will also be expanded to process the additional crude oil supply.
The expanded Bakken pipeline will start from Beaver Lodge Station near Tioga, North Dakota in the U.S. and end at the Enbridge mainline terminal at Cromer, Manitoba in Canada.
The capital cost for the entire project is $550 million.
It will boost volume on the line by 145,000 barrels per day to 325,000 bpd.
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