MPLX Purchases Ozark Pipeline for $220 Million

Polaris Sensor Technologies

Findlay, Ohio-based MPLX LP announced on Feb. 13 that it agreed to purchase the Ozark Pipeline from Enbridge Pipelines, LLC. MPLX is a limited partnership that was formed by Marathon Petroleum Corp. in 2012 with a focus on acquiring and developing midstream energy infrastructure assets. The firm agreed to pay Enbridge $220 million for the 433-mile pipeline.

The Ozark pipeline runs from Cushing, Okla., to Wood River, Ill., and has a capacity for transporting 230,000 barrels of oil per day (bpd). However, MPLX is looking to further expand the pipeline’s capacity, as evidenced by the fact that the firm sent a petition to the Federal Energy Regulatory Commission on Feb. 16 in order to receive approval for such a project.

The planned expansion project, if approved, is expected to be completed in 2Q18, with enhancements consisting of increased horsepower at pump stations and added drag-reducing agents for oil movement. The MPLX release also notes that Enbridge recently acquired enough long-term commitments to increase the capacity of the pipeline to roughly 345,000 bpd.

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

Enbridge and MPLX further announced on Feb. 15 that they closed on a joint-venture investment in the Bakken Pipeline system. The two companies will share an indirect equity interest in the Dakota Access Pipeline and the Energy Transfer Crude Oil Pipeline projects.  

Author Profile
Digital Content Manager

Related posts

Subscribe to OILMAN TodayDelivered right to your inbox

Subscribe to OILMAN Today, a biweekly newsletter delivered to your inbox covering oil and gas business news, current events and industry information you need to know about.