A subsidiary of MPLX LP (NYSE: MPLX) has agreed to buy the Enbridge Ozark Pipeline for about $220 million.
MPLX said in a Feb. 13 statement that its subsidiary MPLX Pipe Line Holdings LLC planned an expansion to the 433-mile pipeline as a result of long-term volume commitments obtained during Enbridge Pipelines (Ozark) LLC’s open season. The expansion will increase the line’s capacity from 230,000 (Mbbl/d) to about 345 Mbbl/d.
The Ozark pipeline is a 22-inch crude oil pipeline originating in Cushing, Okla., and terminating in Wood River, Ill. 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 second-quarter 2018.
“We believe MPLX is extremely well-positioned to grow through a combination of organic projects, dropdowns from our sponsor Marathon Petroleum Corp., 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 first-quarter 2017.
Recommended Reading
US Refiners to Face Tighter Heavy Spreads this Summer TPH
2024-04-22 - Tudor, Pickering, Holt and Co. (TPH) expects fairly tight heavy crude discounts in the U.S. this summer and beyond owing to lower imports of Canadian, Mexican and Venezuelan crudes.
US Gulf Coast Heavy Crude Oil Prices Firm as Supplies Tighten
2024-04-10 - Pushing up heavy crude prices are falling oil exports from Mexico, the potential for resumption of sanctions on Venezuelan crude, the imminent startup of a Canadian pipeline and continued output cuts by OPEC+.
Imperial Expects TMX to Tighten Differentials, Raise Heavy Crude Prices
2024-02-06 - Imperial Oil expects the completion of the Trans Mountain Pipeline expansion to tighten WCS and WTI light and heavy oil differentials and boost its access to more lucrative markets in 2024.
Oil Broadly Steady After Surprise US Crude Stock Drop
2024-03-21 - Stockpiles unexpectedly declined by 2 MMbbl to 445 MMbbl in the week ended March 15, as exports rose and refiners continued to increase activity.
What's Affecting Oil Prices This Week? (March 25, 2024)
2024-03-25 - On average, Stratas Advisors are forecasting that oil supply will be at a deficit of 840,000 bbl/d in 2024.