Marathon Petroleum has joint a project to invest in the Dakota Access Pipeline and the Energy Transfer Crude Oil Pipeline projects.
Marathon agreed to form a joint venture with Enbridge Energy Partners to acquire a partial equity interest in the Bakken Pipeline system from a subsidiary of Energy Transfer Partners and Sunoco Logistics Partners, which owns a 75% indirect stake in the system.
Marathon will own 25% in the new joint venture with Enbridge and at closing, it will own 9.2% indirect interest in the pipeline system for its $500 million investment.
The system is slated to deliver more than 470,000 barrels per day of crude oil from the Bakken/Three Forks production area in North Dakota to the Midwest through Patoka, Illinois, and to the Gulf Coast. It is expected to be ready by the end of 2016.
Gary Heminger, chairman, president and CEO of Marathon says: ‘This system is planned to provide cost-effective access to Bakken crude oil production for the Midwest and Gulf Coast, which will increase Marathon’s refinery supply flexibility.’
Marathon has cancelled its transportation services agreement related to the Sandpiper project and will have its indirect ownership interest in North Dakota Pipeline Company liquidated.