MPLX unit to acquire Ozark pipeline

An affiliate of MPLX Pipe Line Holdings LLC (MPLH), a subsidiary of MPLX LP, has agreed to acquire the 230,000-b/d Ozark crude oil pipeline from Enbridge Pipelines (Ozark) LLC, a subsidiary of Enbridge Energy Partners LP, for $220 million. The 433-mile, 22-in. pipeline originates in Cushing, Okla., and terminates in Wood River, Ill.

An affiliate of MPLX Pipe Line Holdings LLC (MPLH), a subsidiary of MPLX LP, has agreed to acquire the 230,000-b/d Ozark crude oil pipeline from Enbridge Pipelines (Ozark) LLC, a subsidiary of Enbridge Energy Partners LP, for $220 million. The 433-mile, 22-in. pipeline originates in Cushing, Okla., and terminates in Wood River, Ill.

MPLX says an open season recently conducted by Enbridge Pipelines (Ozark) received sufficient long-term volume commitments to plan an expansion of the pipeline's capacity to 345,000 b/d.

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.

“Ozark Pipeline will expand the footprint of our logistics and storage segment by connecting Cushing-sourced volumes to our extensive Midwest pipeline network,” said MPLX Pres. Don Templin.

The deal is expected to close in the first quarter. Enbridge acquired the Ozark pipeline as part of a deal with Shell Pipeline Co. LP and Shell Oil Products in 2003 (OGJ Online, Dec. 29, 2003).

Earlier this month, MPLX wholly owned subsidiary MarkWest Energy Partners LP and Antero Midstream Partners LP reported the formation of a strategic joint venture to support development of Marcellus shale acreage in the rich-gas corridor of West Virginia (OGJ Online, Feb. 6, 2017).

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