Spectra Energy Corp. has closed its acquisition of the Express-Platte Pipeline System, purchasing 100% interest in the 1,717-mile, crude oil system for $1.49 billion.
The pipeline was purchased from Kinder Morgan Energy Partners and KMP’s joint venture partners in Canada, Ontario Teachers’ Pension Plan Board and Borealis Infrastructure, an investment arm of the OMERS pension plan.
The Express-Platte Pipeline System, which begins in Hardisty, Alberta and terminates in Wood River, IL, includes the Express and Platte crude oil pipelines. The Express pipeline carries crude oil to refining markets in the Rocky Mountain states. The pipeline’s capacity is 280,000 bpd. The Platte pipeline, which interconnects with the Express pipeline in Casper, WY, transports crude oil predominantly from the Bakken and western Canada to refiners in the Midwest. Platte’s capacity ranges from 164,000 bpd in Wyoming to 145,000 bpd in Illinois.
The Express-Platte System is one of three major pipelines moving crude oil from western Canada to the U.S. The system also serves the Bakken and Niobrara shale oil plays.