US oil giant Marathon is to spend more than £600million to help with the construction of a new pipeline that will almost double the amount of oil and gas from the Bakken shale fields.
The Sandpiper project will link up with Enbridge Energy’s North Dakota system to allow 580,000 barrels of oil per day to be transported from the field.
The pipeline will add a further 225,000 barrels per day to the capacity of the system, with Marathon to take on 37.5% of the cost of the project. In exchange, it will take a 27% stake in the North Dakota System.
“With the growth in Bakken crude oil production, the Sandpiper Project will provide needed pipeline takeaway capacity for crude oil transportation out of the region,” said Marathon’s supply vice president Mike Palmer.
“This project further strengthens our ability to transport Bakken crude oil by pipelines and benefits MPC by providing additional access to this resource at a competitive cost of transportation.”
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