Enbridge Unit, Embroiled in Protest, Takes $544-Million Loss
Calgary-based Enbridge Inc.’s Texas subsidiary Enbridge Energy Partners reported a $544.5-million third-quarter loss after it cancelled one planned pipeline to avoid opposition from First Nations and environmentalists, in favour of investing in a second—now also the focus of even higher-profile resistance.
The limited partnership headquartered in Houston shelved its plan to build a pipeline it dubbed the Sandpiper from North Dakota’s Bakken oil field to Wisconsin, at a cost of US$1.9 billion, in September. It was motivated in part by its recent acquisition of a 38% share in a separate pipeline system connecting the Bakken fields to Texas.
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A key link in that system is the Dakota Access Pipeline. In the last week, the consortium of which Enbridge is a part has resorted to the use of force, backed by heavily armed local and state police, to clear protesters from the line’s route, attracting wide attention and harsh criticism.
Canadian Press notes, however, that the company’s share in the Dakota Access system may be in limbo. The deal that included its acquisition was originally scheduled to close at the end of September, but remains incomplete.
Despite the setbacks, Enbridge Energy Partners recorded a net profit of US$89.3 million on revenue of $1.12 billion in its third quarter, off from $137.4 million on revenue of $1.127 billion over the same three months last year.