Spectra Energy completes US$1.49 billion acquisition of Express-Platte Pipeline System
March 14, 2013
1.49 Billion USD
On March 14, 2013, Spectra Energy Corp. announced the closing of its US$1.49 billion acquisition of the Express-Platte Pipeline System, purchasing 100 percent interest in the 1,717-mile crude oil system from Borealis Infrastructure, Ontario Teachers’ Pension Plan and Kinder Morgan Energy Partners. The Express-Platte Pipeline System, which begins in Hardisty, Alberta, and terminates in Wood River, Illinois, comprises both the Express and Platte crude oil pipelines. The Express pipeline carries crude oil to U.S. refining markets in the Rockies area, specifically Billings and Laurel, Montana, and Casper, Wyoming. The pipeline’s capacity is 280,000 barrels a day. The Platte pipeline, which interconnects with Express pipeline in Casper, Wyoming, transports crude oil predominantly from the Bakken and western Canada to refiners in the midwest. Platte’s capacity ranges from 164,000 barrels a day in Wyoming to 145,000 barrels a day to Wood River, Illinois.
Spectra Energy, headquartered in Houston, Texas, operates in three key areas of the natural gas industry: transmission and storage, distribution, and gathering and processing. Spectra Energy owns the Texas Eastern Pipelins, one of the largest pipelines systems in the United States.
The Express-Platte Pipeline System is one of three critical pipelines that transport crude oil from Western Canada to the United States.
McCarthy Tétrault LLP represented Spectra Energy as acquirer.