Marathon affiliate buys Enbridge pipeline for $220 million

Marathon Petroleum’s pipeline affiliate, MPLX, said it will buy an Oklahoma-to-Illinois pipeline system from Enbridge for $220 million.

Ohio-based MPLX will take over the 433-mile crude oil pipeline that originates in the Cushing, Oklahoma storage hub and runs to Midwestern refining and pipeline systems near Wood River, Illinois. Calgary-based Enbridge, which bases its U.S. Enbridge Energy Partners affiliate in Houston, is unloading the 230,000-barrel-a-day pipeline Ozark pipeline.

MPLX said it plans to expand the pipeline’s capacity to 345,000 barrels a day, which should be completed in mid-2018.

“Ozark Pipeline will expand the footprint of our logistics and storage segment by connecting Cushing-sourced volumes to our extensive Midwest pipeline network,” said MPLX President Don Templin in a prepared statement.

The deal is expected to close by the end of March.