Energy Transfer, Sunoco Logistics Sell Minority Stake In Bakken Pipeline

(RTTNews) - Energy Transfer Partners, L.P.(ETP) and Sunoco LogisticsPartners L.P. (SXL) announced that they agreed to sell 36.75% of the Bakken Pipeline Project, which includes the Dakota Access pipeline and the Energy Transfer Crude Oil pipeline, to MarEn Bakken Company LLC, an entity jointly owned by Enbridge Energy Partners, L.P. and Marathon Petroleum Corporation (MPC), for $2 billion in cash.

The sale is expected to close in the third quarter of 2016, subject to certain closing conditions. ETP and SXL will receive $1.2 billion and $800 million in cash at closing, respectively.

Upon closing, a subsidiary of MPC has committed to participate in a forthcoming Dakota Access/Energy Transfer Crude Oil Pipeline open season, and subject to the terms and conditions of the open season, make a long-term volume commitment on the Bakken Pipeline Project. A new open season is expected to be launched in the third quarter of 2016.

Bakken Holdings Company, LLC, a joint venture between ETP and SXL, owns a 75-percent membership interest in each of Dakota Access, LLC and Energy Transfer Crude Oil Company, LLC or "ETCO", the entities responsible for developing, owning and operating the Bakken Pipeline Project. The project will consist of approximately 1,172 miles of new 30-inch diameter crude oil pipeline from North Dakota to Patoka, Illinois, and more than 700 miles of pipeline converted to crude service from Patoka to Nederland, Texas. Bakken Holdings is selling 49-percent of its 75-percent interest (36.75%) in Dakota Access and ETCO. The remaining 25-percent of each of Dakota Access and ETCO is owned by wholly-owned subsidiaries of Phillips 66 (PSX).

Upon closing, ownership in the Bakken Pipeline Project will be as follows: ETP/SXL - 38.25%, MarEn 36.75% and PSX - 25%. ETP continues to oversee construction of the pipeline, which is expected to be ready for service at the end of this year. Once in operation, SXL will be the operator.