Banks gives pipeline developer another chance after pulling funding from Dakota Access
Banks that pulled funding from the Dakota Access Pipeline due to strong public opposition are now teaming up with the pipeline’s developer on another controversial fossil fuel project.
Energy Transfer Partners, the lead developer of the Bayou Bridge Pipeline in south-central Louisiana, is using the lessons it learned from the Dakota Access Pipeline saga to win both financial and political support.
Two banks that pulled funding from Energy Transfer Partners’ Dakota Access Project due to public opposition — DNB Capital and US Bank — are both financing Bayou Bridge through credit agreements with Phillips 66 and Energy Transfer, according to a new report released Thursday by the Public Accountability Initiative (PAI), a nonprofit public interest research group.
“But both are still lending to the companies building Bayou Bridge.” Despite Energy Transfer Partners’ dismal safety and environmental track record, financial institutions are lining up to loan the company money.
Altogether, 40 banks have granted access to a total of $12.25 billion in credit to the companies building Bayou Bridge, according to PAI.
If constructed, Bayou Bridge would impact watersheds that supply drinking water for up to 300,000 people.
Even though it’s proposed in a region long accustomed to the impact of the oil and gas industry, the Bayou Bridge project is facing stiff resistance.
These collaborations between industry and academia have become increasingly common across the country.
The LSU report was influential in securing necessary approvals and building public support for the pipeline, according to Galbraith.
The LSU report was prepared by David Dismukes, executive director of the university’s Center for Energy Studies.