U.S. President Donald Trump on Wednesday issued several pipeline permits to facilitate the transportation of crude oil and petroleum products between the U.S. And Canada, including a permit for the construction of a novel pipeline.
Expanding Pipeline Capacity
The White House released documents detailing a permit granted to the Bakken Pipeline Company to “construct, connect, operate and maintain” pipeline facilities in Burke County, North Dakota, at the Canada-U.S. Border. The Bakken Pipeline Company is a limited partnership and a subsidiary of Enbridge, which operates multiple cross-border oil and gas pipeline networks in both Canada and the U.S.
Additional permits were issued to Enbridge for the maintenance and operation of existing pipelines located at border crossings in North Dakota and Michigan.
Mainline Optimization Project
Enbridge’s Mainline Optimization project’s first phase will add 150,000 barrels per day of capacity to its cross-Canada system, a key component of the country’s oil transport infrastructure. A further 100,000 barrels per day of capacity will be added to the Flanagan South system, allowing for increased flow from Illinois to the U.S. Gulf Coast, where the world’s largest refining complex is located.
Enbridge has indicated a second phase of the Mainline Optimization project could add another 250,000 barrels per day of capacity by 2028, utilizing the existing Dakota Access Pipeline, which runs from North Dakota to southern Illinois.
Frequently Asked Questions
What did the presidential permit authorize?
The permit authorized the Bakken Pipeline Company to construct, connect, operate, and maintain pipeline facilities in Burke County, North Dakota, at the Canada-U.S. Border.
Who is the parent company of Bakken Pipeline Company?
Bakken Pipeline Company is a limited partnership and a subsidiary of Enbridge.
What is the Mainline Optimization project intended to do?
The Mainline Optimization project aims to add capacity to Enbridge’s cross-Canada system and the Flanagan South system, increasing the volume of crude oil transported between Canada and the U.S.
As these permits facilitate increased oil transport capacity, it remains to be seen how these developments will impact energy markets and cross-border trade relations in the years to arrive.
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