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
A&D Minute (Nov. 30, 2022): How E&P Big Guns Are Clearing Out the Competition [WATCH]
2022-11-30 - Also in this week’s A&D Minute: Who’s been quietly buying acreage in the Permian Basin? Plus see what else is on new mid-cap powerhouse Permian Resources’ radar.
A&D Minute (Sept. 21, 2022): Is Eagle Ford Consolidation Inevitable? [WATCH]
2022-09-21 - Also in this week’s A&D Minute: SilverBow Resources’ $50 million acquisition provides a new position in this South Texas gas play and U.S. Energy Development Corp. recently acquired core Permian Basin acreage for more than $60 million.
A&D Minute (Oct. 12, 2022): Exclusive on Oxy’s Permian JV with Hollub [WATCH]
2022-10-12 - Also in this week’s A&D Minute: NOG eclipses $1 billion in deals this year with an additional Delaware Basin bolt-on and is Exxon Mobil considering buying Denbury?
A&D Minute (Sept. 14, 2022): This Year’s ‘Strange and Broken’ Flow of M&A [WATCH]
2022-09-14 - Also in this week’s A&D Minute: what does the Winter Storm Uri have to do with Williams’ purchase of NorTex Midstream and why analysts are calling EQT’s $5.2 billion deal a cash cow.
A&D Minute (Oct. 5, 2022): Chevron Permian Asset Sale? [WATCH]
2022-10-05 - Also in this week’s A&D Minute: SilverBow Resources agreed to an Eagle Ford Shale bolt-on following its adoption of a poison pill and Northern Oil and Gas remains Piper Sandler’s “favorite idea in SMID E&P.” Find out why.