A Marathon Petroleum Corp. (MPLX LP) subsidiary, MPLX Pipeline Holdings, has signed an asset purchase deal with Enbridge Inc.'s Ozark Pipeline LLC.
According to news sources, MPLX Pipeline Holdings is set to purchase the Ozark pipeline for US$220 million., subject to regulatory approvals. The deal is scheduled for closure in 1Q17.
Starting in Wood River (Oklahoma) and terminating in Cushing (Illinois), the Ozark pipeline is a 22 in., 433 mile crude oil pipeline with a capacity of 230 000 bpd. The company plans increase the pipeline's capacity to 345 000 bpd by the 2Q18.
According to Natural Gas Intel: “The acquisition is designed to add supplies from Cushing hub to MPLX's extensive existing pipelines in the Midwest.”