Sector News

Enbridge, Marathon take minority stake in Bakken pipeline

August 3, 2016

Enbridge Inc said on Tuesday it had formed a joint venture with Marathon Petroleum Corp to take a minority stake in a holding company that owns 75 percent of the Bakken Pipeline System.

Enbridge, through its subsidiary Enbridge Energy Partners, will pay $1.5 billion for what will amount to a 27.6 percent stake in the pipeline system, which is set to carry oil from the Bakken region to Midwestern refineries and on to the Gulf Coast. Marathon will pay $500 million for its smaller share.

“This will provide our shippers the ultimate potential to reach the eastern USGC (United States Gulf Coast), which has been a strategic priority for us,” Guy Jarvis, Enbridge’s executive vice president for liquids pipelines, said in a statement.

The Bakken Pipeline System is made up of two pipeline projects – the Dakota Access Pipeline and the Energy Transfer Crude Oil Pipeline – both of which are expected to be in service by year end.

The deal involves the Enbridge-Marathon joint venture paying $2 billion to Energy Transfer Partners and Sunoco Logistics Partners for a 49 percent stake in the holding company that owns 75 percent of the system.

Phillips 66 owns the remaining 25 percent of the Bakken Pipeline System. Once in operation, Sunoco Logistics will be the pipeline operator.

The all-cash deal is expected to close in the third quarter of 2016.

By Julie Gordon

Source: Reuters

comments closed

Related News

August 23, 2019

The higher purpose of being a CEO

Borderless Leadership

LinkedIn Twitter Xing EmailWhen I left my second large company experience to become President of a small manufacturing company I did so driven by ego; I fancied the title. Soon […]

August 23, 2019

As Brexit nears, Britain’s drugs, devices and pricing regulators seek the exit

Life sciences

LinkedIn Twitter Xing EmailFirm details on exactly how the U.K. will regulate new medicines is still to be decided after it leaves the EU later this year (caveats on timing […]

August 23, 2019

The Simply Good Foods Company acquires Quest Nutrition for $1bn

Consumer Packaged Goods

LinkedIn Twitter Xing EmailThe Simply Good Foods Company, the owner of Atkins-branded food products, has secured a deal to acquire protein snack maker Quest Nutrition for $1 billion. Quest, which […]

How can we help you?

We're easy to reach