Marathon Petroleum and Enbridge Inc. have agreed to buy a 49% stake in the Bakken Pipeline system for $2 billion. The seller is a subsidiary of Energy Transfer Partners and Sunoco Logistics Partners that owns 75% of the system. The system includes the Dakota Access Pipeline and Energy Transfer Crude Oil Pipeline projects, which together will deliver more than 470,000 barrels per day of Bakken oil to the Gulf Coast. It is expected to be in service by the end of the year.
Marathon said its involvement in the Sandpiper and North Dakota Pipeline Co. projects would end upon closing the Bakken Pipeline system deal. CEO Gary Heminger said the new investment would substantially reduce his company’s investment in North Dakota crude oil pipelines. Marathon is investing $500 million in the deal, for a 9.2% indirect interest in the system.
MORE PIPELINE NEWS: TransCanada plans $800M refined products pipeline in Mexico