MPLX LP subsidiary to purchase Ozark Pipeline

abarrelfullabarrelfull wrote on 19 Oct 2018 15:15

Latest News

{"module":"feed\/FeedModule","params":{"src":"http:\/\/\/feed\/pages\/pagename\/blog%3A_start\/category\/blog\/limit\/10\/t\/My+Blog","limit":"4","module_body":"* %%linked_title%%"}}
  • Want a weekly review of refining news?

Feb. 13, 2017

MPLX LP (NYSE: MPLX) today announced that its MPLX Pipe Line Holdings LLC subsidiary (MPLH) has entered into an asset purchase agreement with Enbridge Pipelines (Ozark) LLC, under which an affiliate of MPLH has agreed to purchase Enbridge's Ozark Pipeline for approximately $220 million.

The Ozark pipeline is a 433-mile, 22-inch crude oil pipeline originating in Cushing, Oklahoma, and terminating in Wood River, Illinois, capable of transporting approximately 230,000 barrels per day (bpd).

MPLX also announced that an open season recently conducted by Enbridge Pipelines (Ozark) LLC received sufficient long-term volume commitments to plan an expansion of the pipeline's capacity to approximately 345,000 bpd. The expansion project design includes increasing the horsepower at pump stations along the pipeline and adding drag-reducing agents to the crude oil. The expansion project is expected to be complete in the second quarter of 2018.

"We believe MPLX is extremely well-positioned to grow through a combination of organic projects, dropdowns from our sponsor Marathon Petroleum Corporation, and third-party acquisitions," said Don Templin, president of MPLX. "Ozark Pipeline will expand the footprint of our logistics and storage segment by connecting Cushing-sourced volumes to our extensive Midwest pipeline network."

The purchase transaction is expected to close in the first quarter of 2017, subject to customary closing conditions, including regulatory approvals.

Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License