A joint initiative between Enbridge (ENB) and Energy Transfer (ET) to reposition crude oil flows through the Bakken region has taken a major step forward. The project recently secured a presidential permit on April 15, clearing a critical regulatory hurdle and signaling momentum for what could become a strategically important shift in North American crude logistics.
Reversing the Flow: A Strategic Pivot
At the core of the project is the reversal of Enbridge’s Bakken Pipeline, which currently transports crude oil northbound into Canada. The new plan flips that direction—enabling southbound flows into the U.S. pipeline network, aligning infrastructure with evolving supply dynamics.
This shift reflects a broader trend:
- Growing Western Canadian crude production
- Increasing demand for efficient access to U.S. refining and export markets
Line 26 Optimization: Connecting to DAPL
The project also includes construction of a new 24-inch pipeline (Line 26) spanning approximately 80 miles, with about 60 miles located in North Dakota.
This new segment will:
- Connect Enbridge’s Bakken system to Energy Transfer’s Ramberg Terminal
- Provide direct access to the Dakota Access Pipeline (DAPL)
This connection is key.
DAPL currently has:
- 750 Mb/d of capacity
- Flows around 500 Mb/d
👉 This leaves significant room to absorb additional volumes, particularly as Canadian crude output continues to rise.
System Changes and Infrastructure Optimization
To support the new configuration, Enbridge plans to:
- Decommission a 12-inch pipeline segment from Steelman Station to near the U.S.–Canada border
- Abandon the line to Berthold Terminal
- Construct a new route that parallels existing infrastructure before tying into Ramberg
The system will primarily transport conventional light crude oil.
Unlocking Underutilized Capacity
One of the most compelling aspects of this project is how it leverages existing infrastructure.
According to East Daley Analytics:
- The Enbridge Bakken system has 149 Mb/d capacity
- But averaged only 25 Mb/d throughput in 2025
👉 That’s a massive underutilization.
Rather than building entirely new long-haul pipelines, this project:
- Repurposes existing assets
- Improves efficiency
- Reduces capital intensity
Timeline Moving Faster Than Expected
Earlier guidance suggested regulatory filings in the second half of 2026. However, the recent permit approval indicates a more accelerated timeline:
- Construction start: Expected in 2027
- In-service target: Late 2028 (pending approvals)
This suggests strong alignment between regulators and operators on the project’s strategic importance.
Market Context: Stable Supply, Temporary Refining Weakness
Recent data provides additional context:
Supply Trends
- Overall U.S. production proxy: flat (-0.1%)
- Growth in:
- Permian Basin (+1.3%)
- Barnett (+9.3%)
- Declines in:
- Gulf Coast
- Rockies
👉 Net result: relatively stable supply environment
Refining Activity
- 150.5 Mb/d of refining capacity currently offline
- BP Whiting: 75 Mb/d
- Par Montana: 61.5 Mb/d
- Expected to return by mid-May
👉 This represents a temporary dip in crude demand, not a structural issue.
Export Activity
- Gulf Coast vessel loadings:
- 34 vessels per week
- Increasing from early April levels
👉 Indicates healthy export demand, supporting the need for additional pipeline connectivity.
Why This Project Matters
This isn’t just a pipeline upgrade—it’s a strategic reconfiguration of crude flows across North America.
Key impacts include:
- 🔄 Reversing legacy infrastructure to match modern supply trends
- 🔗 Connecting Canadian and Bakken crude directly to DAPL
- 📈 Unlocking stranded capacity instead of building new systems
- 🌎 Strengthening access to Gulf Coast export markets
Final Takeaway
The Enbridge–Energy Transfer Bakken project highlights a broader industry shift:
maximizing existing infrastructure to adapt to changing production and export dynamics.
As Canadian output grows and global demand for North American crude remains strong, projects like this will play a critical role in ensuring efficient, cost-effective market access.
Enbridge and Energy Transfer have received a key U.S. permit to reverse flows on the Bakken Pipeline and build a new connection to the Dakota Access Pipeline, enabling more crude to move south into U.S. markets. The project will unlock underutilized capacity and create a more efficient export route for growing Canadian and Bakken oil production.
Author: phinds
