A unit of the midstream master limited partnership of Marathon Petroleum Corp., MPLX Pipe Line Holdings LLC, has agreed to buy Enbridge Pipelines LLC's Ozark line for approximately $220 million. The MPLX LP unit also announced its plans for expanding the acquired pipeline.
Ozark oil pipeline carries about 230,000 b/d between Wood River, IL, and the terminaling hub at Cushing, OK, through a 22-inch diameter, 433-mile line. The acquisition is designed to add supplies from Cushing hub to MPLX's extensive existing pipelines in the Midwest.
MPLX also said an open season that Enbridge's Ozark recently completed drew enough long-term volume commitments to allow it to plan an expansion of the pipeline's capacity up 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," MPLX said. The expansion is slated to be completed in the second quarter of 2018.
The midstream company also said the purchase is expected to close during the current quarter, subject to regulatory approvals and other conditions.
"MPLX is extremely well-positioned to grow through a combination of organic projects, dropdowns from our sponsor [Marathon Petroleum], and third-party acquisition," said President Don Templin. "Ozark Pipeline will expand the footprint of our logistics and storage segment by connecting Cushing-sourced volumes to our extensive Midwest pipeline network."