MPLX Acquires Equity Interest in Dakota Access Pipeline
FINDLAY, Ohio – MPLX LP announced Wednesday it has closed on a previously announced acquisition of a partial, indirect interest in the Dakota Access Pipeline and Energy Transfer Crude Oil Pipeline projects through a joint venture with Enbridge Energy Partners, L.P.
MPLX, formed in 2012 by Marathon Petroleum Corp. to own, develop and operate midstream infrastructure, contributed $500 million toward the $2 billion purchase price paid by the joint venture to Energy Transfer Partners L.P. and Sunoco Logistics Partners L.P. The joint venture payment accounts for a 36.75% indirect equity interest in the projects, collectively known as the Bakken Pipeline System.
MPLX holds through a subsidiary a 25% interest in the joint venture, which equates to about 9.2% indirect equity interest in the Bakken system, the company said.
MPLX owns and operates an oil and gas midstream network across the Utica shale in Ohio, which includes processing plants operating under the MarkWest name in Harrison County.
The Dakota Access Pipeline has been a contentious issue for months since a portion of it crosses the Standing Rock Indian Reservation. The pipeline has drawn protests over the last year from tribes that oppose the pipeline and have actively halted its construction.
However, the Trump administration three weeks ago gave the go-ahead for the Army Corps of Engineers to expedite its review and approval of the pipeline. Last week, the Army granted the necessary easements so construction could resume.
Pictured: MPLX’s processing plant in Harrison County, West Virginia.
Copyright 2018 The Business Journal, Youngstown, Ohio.
Published by The Business Journal, Youngstown, Ohio.
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