Deals - Joint Ventures | Midstream - Transportation & Pipelines
Marathon Joins Enterprise To Build Dakota Access Pipeline
Marathon Petroleum has decided to form a JV to invest in the Dakota Access Pipeline and the Enterprise Transfer Crude Oil Project referred to as the Bakken Pipeline system.
Marathon Petroleum will own 25 % equity interest in the venture with Enbridge. The company will contribute $500 million which will entitle it to 9% interest in the pipeline.
"This system is planned to provide cost-effective access to Bakken crude oil production for the Midwest and Gulf Coast, which will increase MPC's refinery supply flexibility," said Gary R. Heminger, MPC chairman, president and chief executive officer. "In addition, MPC's equity-ownership interest in these major pipelines will make a significant contribution toward the company's plan to grow its midstream logistics business."
The Bakken Pipeline system is currently expected to deliver in excess of 470,000 barrels per day of crude oil from the Bakken/Three Forks production area in North Dakota to the Midwest through Patoka, Illinois, and to the Gulf Coast. The Bakken Pipeline system is expected to be ready for service by the end of 2016.
Heminger noted MPC's investment in the Bakken Pipeline system substantially reduces the company's total expected capital investment in North Dakota crude oil-related pipelines.
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