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DAPL financing and Bakken equity interest sale completed

Published by , Assistant Editor
World Pipelines,

Energy Transfer Partners, L.P. (ETP) and Sunoco Logistics Partners L.P. (SXL) have successfully completed approximately US$3.4 billion of committed debt financing and equity transactions, including the project financing for the Dakota Access pipeline (DAPL) and Energy Transfer Crude Oil pipeline (ETCOP) projects (collectively the Bakken pipeline). The companies have also announced the closing of the sale of a 36.75% interest in the Bakken pipeline to MarEn Bakken Company LLC (MarEn) – a jointly owned entity by MPLX LP and Enbridge Energy Partners, L.P.

Completing the project-level financing for the Bakken pipeline provided Dakota Access, LLC with access to the remaining US$1.4 billion of cash proceeds under the previously announced US$2.5 billion project financing facility, which Dakota Access, LLC will use to fund construction costs for its pipeline project.

Upon closing of the sale of a minority interest in the Bakken pipeline to MarEn, ETP and SXL received US$1.2 billion and US$800 million in cash, respectively. The companies plan to use the proceeds to pay down debt and help fund current growth projects.

As a result of this closing, ownership in the Bakken pipeline is now as follows: ETP/SXL - 38.25%; MarEn - 36.75%; Phillips 66 - 25%. ETP and SXL own 60% and 40%, respectively, of the combined 38.25% equity interest in the Bakken pipeline.

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