Enbridge has scrapped its plans to build a $2 billion Bakken crude pipeline.
Enbridge told Bloomberg that it has withdrawn its regulatory application for the Sandpiper Pipeline and added that North Dakota will not require more pipeline capacity for five more years.
The pipeline would have transported crude from North Dakota through Minnesota to Wisconsin.
Low crude prices have been slowing production growth in the Bakken shale play.
According to the U.S. Energy Information Administration, total oil production in the Bakken region fell 26,000 barrels per day month-over-month in August.
Bakken production has fallen below the 1 million barrel per day mark, the play’s lowest production level since 2014.
The number of rigs operating in the Williston Basin, home of the Bakken play, fell from 72 rigs a year ago to 28 rigs last week, according to Baker Hughes.
Calgary-based Enbridge also told Bloomberg it has reached an agreement to fund its recently announced acquisition of a stake in the Bakken Pipeline System.
The company told Bloomberg it has raised enough funds to complete the purchase.
Details about the funding agreement have not been disclosed yet.
Enbridge Energy Partners (EEP) and Marathon Petroleum Corporation formed a new joint venture last month that will acquire a 49 percent equity interest in the holding company that owns 75 percent of the Bakken Pipeline System.
The stake was purchased from an affiliate of Energy Transfer Partners and Sunoco Logistics Partners.
EEP will indirectly hold 75 percent of the joint venture’s 49 percent interest in the holding company and Marathon will a hold 25 percent interest.
The purchase price of EEP’s effective 27.6 percent interest in the system is $1.5 billion.
Closing of the transaction is subject to certain conditions, and is expected to occur in the third quarter of 2016.
The Bakken Pipeline System consists of the Dakota Access Pipeline and the Energy Transfer Crude Oil Pipeline projects.
Phillips 66 owns the other 25 percent stakes in each pipeline project.
When the Bakken deal was announced, EEP and Marathon said that they planned to terminate their transportation services and joint venture agreements for the Sandpiper Pipeline Project upon successful closing of the transaction.
“EEP continues to believe the Bakken region is a highly productive and attractive basin, which has significant crude oil supply growth potential that will require additional pipeline capacity in the future.” EEP said in August.
EEP added in August that, in conjunction with the termination of the Sandpiper joint venture agreements with Marathon Petroleum, EEP will retain 100 percent ownership in its legacy North Dakota system.