Marathon Petroleum Corporation Commits to Sandpiper Project
(Thomson Reuters ONE) -
FINDLAY, Ohio, Nov. 25, 2013 - Marathon Petroleum Corporation (NYSE: MPC) and
Enbridge Energy Partners, L.P. announced that MPC will serve as an anchor
shipper for the Sandpiper Project. MPC will fund 37.5 percent of the
construction of the Sandpiper Project, which will become part of Enbridge Energy
Partners' North Dakota System when it is completed. Sandpiper is targeted to be
operational in early 2016. In exchange for MPC's commitment to participate in
the open season for Sandpiper and its investment in this project, MPC will earn
an approximate 27 percent interest in Enbridge Energy Partners' North Dakota
System when Sandpiper is placed into service. MPC will also have the option to
increase its ownership interest to 30 percent through additional investments in
future system improvements.
The Sandpiper Project is the next phase of crude oil pipeline expansion that
will provide a safe and reliable transportation corridor from Beaver Lodge, N.D.
to Superior, Wis. It will expand and extend the Bakken takeaway capacity of the
North Dakota System by 225,000 barrels per day (bpd) to a total of 580,000 bpd.
The Sandpiper pipeline is currently estimated to cost approximately $2.6
billion.
"With the growth in Bakken crude oil production, the Sandpiper Project will
provide needed pipeline takeaway capacity for crude oil transportation out of
the region," said Mike Palmer, senior vice president, Supply, Distribution and
Planning. "This project further strengthens our ability to transport Bakken
crude oil by pipelines and benefits MPC by providing additional access to this
resource at a competitive cost of transportation."
In 2012, MPC agreed to be the anchor shipper on the Enbridge Southern Access
Extension pipeline from Flanagan, Ill. to Patoka, Ill. As a result of that
commitment, MPC has the option to acquire a 25 percent ownership interest in
Southern Access Extension. Due to MPC's commitment to the Sandpiper Project,
MPC's option for ownership interest in Southern Access Extension will increase
an additional 10 percent to a total of 35 percent.
These projects further MPC's ability to cost effectively access the shale
production from this part of the country. In addition, MPC's equity ownership
interest in both of these major pipelines will make a significant contribution
toward the company's plan to grow its midstream logistics business.
MPC is making strategic investments in organic projects in other shale plays in
the U.S. MPC currently has underway in the Utica Shale region in eastern Ohio a
number of midstream projects that will facilitate transportation and processing
crude oil and condensate from this emerging shale play.
Palmer added, "Along with the infrastructure investments for loading and
unloading Utica production, we are investing in condensate splitters at our
Canton, Ohio and Catlettsburg, Ky. refineries. In addition, we are developing a
new pipeline project in the Utica Shale region that will connect multiple
production facilities in eastern Ohio to our Canton refinery and MPLX LP
pipelines in the area. We are committed to positioning ourselves as the customer
of choice for these opportunities to process domestic crude oil and condensate."
# # #
About Marathon Petroleum Corporation
MPC is the nation's fourth-largest refiner, with a crude oil refining capacity
of approximately 1.7 million barrels per calendar day in its seven-refinery
system. Marathon brand gasoline is sold through approximately 5,100
independently owned retail outlets across 18 states. In addition, Speedway LLC,
an MPC subsidiary, owns and operates the nation's fourth-largest convenience
store chain, with approximately 1,470 convenience stores in nine states. MPC
also owns, leases or has ownership interests in approximately 8,300 miles of
pipeline. Through subsidiaries, MPC owns the general partner of MPLX LP, a
midstream master limited partnership. MPC's fully integrated system provides
operational flexibility to move crude oil, feedstocks and petroleum-related
products efficiently through the company's distribution network in the Midwest,
Southeast and Gulf Coast regions. For additional information about the company,
please visit our website at http://www.marathonpetroleum.com.
About MPLX LP
MPLX is a fee-based, growth-oriented master limited partnership formed in 2012
by Marathon Petroleum Corporation to own, operate, develop and acquire pipelines
and other midstream assets related to the transportation and storage of crude
oil, refined products and other hydrocarbon-based products. Headquartered in
Findlay, Ohio, MPLX's assets consist of a majority equity interest in a network
of common carrier crude oil and products pipeline assets located in the Midwest
and Gulf Coast regions of the United States and a 100 percent interest in a
butane storage cavern located in West Virginia.
Investor Relations Contacts:
Pamela Beall (419) 429-5640
Beth Hunter (419) 421-2559
Geri Ewing (419) 421-2071
Media Contacts:
Angelia Graves (419) 421-2703
Stefanie Griffith (419) 421-4327
MPC Commits to Sandpiper Project:
http://hugin.info/147922/R/1745652/587537.pdf
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(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Marathon Petroleum Corporation via GlobeNewswire
[HUG#1745652]
Unternehmensinformation / Kurzprofil:
Datum: 25.11.2013 - 22:36 Uhr
Sprache: Deutsch
News-ID 320235
Anzahl Zeichen: 6306
contact information:
Town:
Findlay, Ohio
Kategorie:
Business News
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