Enbridge Energy Partners LP is the next company in line to announce job cuts this year.
According to the Houston Chronicle, in hopes to help cut costs, Enbridge Energy Partners is cutting jobs in its domestic gas pipelines and processing business unit. The company cut less than 100 jobs.
The job cuts will impact the company’s midstream unit, Midcoast Energy Partners LP, a limited partnership created by Enbridge Energy Partners.
Michael Barnes, a senior manager of U.S. corporate business communications for Enbridge, commented on the job cuts:
This was not the result of lower oil prices … This cost reduction for MEP will help this business unit meet its strategic objectives and financial goals while maintaining our commitment to the safety and operational reliability of the pipeline system.
During the third quarter last year, Enbridge Energy Partners adjusted operating income dropped by $20 million. This was due to companies cutting back on production, which led to reduced volumes of natural gas traveling through the company’s pipeline.
Earlier this year, Enbridge and Enterprise Products Partners LP completed the Seaway Pipeline. The 512 mile crude oil pipeline, the Seaway Pipeline. The pipeline runs from Oklahoma to the Houston area and began operating in the fall.
In efforts to advance in North Dakota’s Bakken shale formations, Enterprise considered a 1,200 mile pipeline to flow into the Seaway Pipeline. The company announced last week that they are not going to pursue the project due to lack of sufficient support.
Enbridge is not the only company to cut jobs, BP PLC and Halliburton also made the list.
BP PLC is expected to spend $1 billion in restricting charges through 2015. The company plans to restructure and cut jobs, those including mid-level managers in production, refining and its corporate offices.