Sunoco Logistics Partners L.P. of Newtown Square and its
parent company, Energy Transfer Partners L.P., say they have sold a 36.75
percent share of the Bakken Pipeline Project for $2 billion to MarEn Bakken
Company L.L.C., an entity jointly owned by Enbridge Energy Partners L.P. and
Marathon Petroleum Corp.
In an announcement after financial markets closed
Tuesday, the project owners also said that a syndicate of financial
institutions agreed to provide $2.5 billion in financing for the pipeline,
which will deliver North Dakota crude oil to terminals in Illinois and Texas
when it is completed late this year.
The $3.7 billion pipeline, designed to move 470,000
barrels of crude a day, or about half the production from the Bakken Shale
region, is expected to dramatically reduce the volume of crude oil that moves
by rail.
Upon closing the deal, ETP and Sunoco Logistics will own
38.25 percent of the project, MarEn will own 36.75 percent, and Phillips 66
will own 25 percent. ETP is building the pipeline, and Sunoco Logistics will
operate it.
The Bakken project includes the Dakota Access Pipeline, a
new 1,172-mile pipeline to deliver crude from North Dakota to Patoka, Ill. An
existing 700-mile pipeline also is being converted to crude service from Patoka
to Nederland, Texas, where Sunoco Logistics and Phillips 66 operate marine
terminals.
In midday trading Wednesday, ETP's shares were up 9
percent, at $41.92. Sunoco Logistics units were up 6.44 percent at $29.58, and
Phillips 66 was up 2.11 percent at $77.74.
Source: Philly.com
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