Midstreamer MPLX announced today its MPLX Pipe Line Holdings subsidiary is acquiring Enbridge’s Ozark Pipeline for roughly $220 million, Kallanish Energy reports.
The Ozark Pipeline is a 433-mile, 22-inch, 230,000 barrels per day (BPD) capacity crude oil line originating in Cushing, Oklahoma, and terminating in Wood River, Illinois.
“Ozark Pipeline will expand the footprint of our logistics and storage segment by connecting Cushing-sourced volumes to our extensive Midwest pipeline network,” said Don Templin, president of MPLX.
MPLX also announced that an open season recently conducted by Enbridge Pipelines (Ozark) received sufficient long-term volume commitments to expand the pipeline`s capacity to roughly 345,000 BPD.
The expansion project includes increasing the horsepower at pump stations along the pipeline and adding drag-reducing agents to the crude oil. The project is expected to be completed in the second quarter of 2018.
The purchase transaction is expected to close by April 1.