Spectra Energy completes acquisition of Express-Platte Pipeline System

US-based Spectra Energy has announced that it has completed the acquisition of the Express-Platte Pipeline System, for $1.49bn.

The Express-Platte System is a 1,717 mile crude oil pipeline, which starts in Hardisty, Alberta in Canada and ends in Wood River, Illinois in the US.

It includes the Express and Platte crude oil pipelines, which will carry crude oil to refining markets in the Rocky Mountain states.

The pipeline has the capacity to store about 280,000 barrels of oil per day.

The Platte pipeline interconnects the Express pipeline in Casper and Wyoming and transports crude oil from the Bakken and Western Canada to refiners in the Midwest.

The Platte pipeline system has the capacity to store about 164,000 barrels of oil per day in Wyoming, while it can store nearly 145,000 barrels a day in Illinois.

Spectra Energy president and CEO Greg Ebel said the Express-Platte Pipeline System will add immediate benefit to the company’s shareholders, as it expands the company’s portfolio with crude oil transportation and storage assets, which will start producing earnings on day one.

"This strategically located system gives Spectra Energy instant scale and scope in this rapidly growing space," Ebel added.

"As we’ve seen in our natural gas and natural gas liquids businesses, we anticipate these assets also will provide numerous growth opportunities in related crude and refined products services as volumes and flows evolve in the coming years.

"And finally, the escalating fee-based cash flow profile of Express-Platte makes it an ideal future drop-down candidate to our master limited partnership, Spectra Energy Partners."

Spectra Energy Liquids president Duane Rae will lead the Express-Platte System to develop the company’s crude oil infrastructure business.

The Express-Platte System is one of three major pipelines that will move crude oil from western Canada to the US, while it will also serve the Bakken and Niobrara shale oil plays.