Inspectioneering
News

MPLX LP Subsidiary to Purchase Ozark Pipeline

MPXL LP, February 13, 2017

MPLX LP today announced that its MPLX Pipe Line Holdings LLC subsidiary (MPLH) has entered into an asset purchase agreement with Enbridge Pipelines (Ozark) LLC, under which an affiliate of MPLH has agreed to purchase Enbridge's Ozark Pipeline for approximately $220 million. The Ozark pipeline is a 433-mile, 22-inch crude oil pipeline originating in Cushing, Oklahoma, and terminating in Wood River, Illinois, capable of transporting approximately 230,000 barrels per day (bpd).

MPLX also announced that an open season recently conducted by Enbridge Pipelines (Ozark) LLC received sufficient long-term volume commitments to plan an expansion of the pipeline's capacity to approximately 345,000 bpd. The expansion project design includes increasing the horsepower at pump stations along the pipeline and adding drag-reducing agents to the crude oil. The expansion project is expected to be complete in the second quarter of 2018.

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

The purchase transaction is expected to close in the first quarter of 2017, subject to customary closing conditions, including regulatory approvals. 

 

About MPLX LP

MPLX is a diversified, growth-oriented master limited partnership formed in 2012 by Marathon Petroleum Corporation to own, operate, develop and acquire midstream energy infrastructure assets. We are engaged in the gathering, processing and transportation of natural gas; the gathering, transportation, fractionation, storage and marketing of NGLs; and the transportation and storage of crude oil and refined petroleum products.

 


Comments and Discussion

There are no comments yet.

Add a Comment

Please log in or register to participate in comments and discussions.

Interested in equipment reliability & integrity? Sign up for weekly updates.

Inspectioneering Journal

Explore over 20 years of articles written by our team of subject matter experts.

Company Directory

Find relevant products, services, and technologies.

Job Postings

Discover job opportunities that match your skillset.

Case Studies

Learn from the experience of others in the industry.

Event Calendar

Find upcoming conferences, training sessions, online events, and more.

Industry News

Stay up-to-date with the latest inspection and asset integrity management news.

Blog

Read short articles and insights authored by industry experts.

Acronyms

Commonly used asset integrity management and inspection acronyms.

Asset Intelligence Reports

Download brief primers on various asset integrity management topics.

Videos

Watch educational and informative videos directly related to your profession.

Expert Interviews

Inspectioneering's archive of interviews with industry subject matter experts.