Spectra Energy to buy Express-Platte oil pipeline system for $1.49 bn
11 Dec 2012
Spectra Energy Corp, one of North America's leading natural gas infrastructure companies, today said it will buy the Express-Platte oil pipeline system that connects Canadian and US producers to refineries in the Rocky Mountain and Midwest regions, for $1.49 billion.
The Houston-based company is buying the Express-Platte Pipeline System from Borealis Infrastructure, the Ontario Teachers' Pension Plan and Kinder Morgan Energy Partners for $1.49 billion, consisting of $1.25 billion cash and $240 million of acquired debt.
The 1,717-mile Express-Platte Pipeline System, which is one of just three major pipelines moving crude oil from Western Canada to refineries and markets in the Rockies and Midwest refineries and markets, begins in Hardisty, Alberta, and terminates in Wood River, Illinois, and comprises the Express and Platte crude oil pipelines.
The 280,000 barrels a day capacity Express pipeline carries crude oil to US refining markets in the Rockies area, specifically Billings and Laurel, Montana, and Casper, Wyoming.
The Platte pipeline, which interconnects with Express pipeline in Casper, Wyoming, transports crude oil predominantly from the Bakken and Western Canada to refiners in the Midwest. Platte's capacity ranges from 164,000 barrels a day in Wyoming to 145,000 barrels a day to Wood River, Illinois.
"The Express-Platte Pipeline System acquisition is an immediately accretive investment in a fee-based business that expands Spectra Energy's footprint into a rapidly growing area," said Greg Ebel, president and CEO od Spectra.
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