(Enbridge or the company), have announced that EEP and Marathon Petroleum Corporation (Marathon Petroleum) have formed a new joint venture, which in turn has entered into an agreement to acquire a 49% equity interest in the holding company that owns 75% of the Bakken Pipeline System (Bakken Pipeline or the “System”) from an affiliate of Energy Transfer Partners, L.P. (Energy Transfer) and Sunoco Logistics Partners L.P. (Sunoco Logistics).
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Energy Transfer Partners (ETP) and Sunoco Logistics Partners (SXL) said late Tuesday that they agreed to sell 36.75% of their Bakken pipeline project in the Rockies to MarEn Bakken Co.
The Bakken Pipeline system is now expected to deliver in excess of 470,000 barrels per day of crude oil from the Bakken/Three Forks production area in North Dakota to the Midwest through Patoka, Illinois, and to the Gulf Coast.
The project will consist of roughly 1,172 miles of new 30-inch crude pipeline from North Dakota to Patoka, Illinois, and more than 700 miles of pipeline converted to crude service from Patoka to Nederland, Texas.
EEP says it is paying $1.5B for its share in the deal, while MPC says it is contributing $500M in the joint venture project to acquire the stake in the holding company that owns 75% of the pipeline network.
Enbridge Executive Vice President of Liquid Pipelines and Major Projects, Guy Jarvis said: “The Bakken Pipeline System is a great example of how the right acquisition can support and bolster our liquids pipelines strategy, while also supporting our USA sponsored vehicle – EEP”.
Energy Transfer continues to oversee construction, while Sunoco Logistics will operate the pipeline upon completion. The remaining 25% of each of Dakota Access and ETCO is owned by wholly-owned subsidiaries of Phillips 66.
Proceeds from the sale will be used by Energy Transfer and Sunoco Logistics to reduce debt and fund growth projects.
Guy Jarvis, Executive Vice President – Liquids Pipelines and Major Projects of Enbridge, noted: “The Bakken Pipeline System is a great example of how the right acquisition can support and bolster our liquids pipelines strategy, while also supporting our United States sponsored vehicle – EEP”.
Both the projects are expected to be finalised by the end of this year.
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The Dakota Access pipeline is now expected to deliver in excess of 470,000 barrels per day of crude oil from the Bakken/Three Forks production area in North Dakota to market centers in the Midwest. Through subsidiaries, MPC owns the general partner of MPLX LP, a midstream master limited partnership. For more information, visit the Sunoco Logistics Partners L.P. website at www.sunocologistics.com. You can identify forward-looking statements by words such as “anticipate”, “believe”, “design”, “estimate”, “expect”, “forecast”, “goal”, “guidance”, “imply”, “intend”, “objective”, “opportunity”, “outlook”, “plan”, “position”, “pursue”, “prospective”, “predict”, “project”, “potential”, “seek”, “strategy”, “target”, “could”, “may”, “should”, “would”, “will” or other similar expressions that convey the uncertainty of future events or outcomes. An extensive list of factors that can affect future results are discussed in each registrant’s Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission.
