NEW YORK Spectra Energy
Corp. has signed a deal to acquire the 1,717-mile
Express-Platte Pipeline System for $1.49 billion.
Houston-based Spectra will take
on full ownership of the system in the deal, which comprises
$1.25 billion in cash and $240 million of acquired debt. Two
crude oil pipelines make up the system: A 24-inch, 785-mile
pipeline runs from Hardisty, Alberta, to Casper, Wyo., and a
20-inch, 932-mile pipeline runs from Casper to Wood River,
The system is currently owned by
Borealis Infrastructure, the Ontario Teachers Pension
Plan and Kinder Morgan Energy Partners LP.
Spectra president and chief
executive officer Greg Ebel said the proposed acquisition would
be immediately accretive to earnings and allow Spectra to grow
its footprint in an expanding sector.
"This system is strategically
located to supply crude oil to U.S. refining markets. It also
represents an incremental growth platform for Spectra Energy
that enables further investment in related crude and refined
product assets," he said in a statement. "Given Spectra
Energys leading position in the natural gas midstream
sector, investing in crude oil midstream assets is a logical
extension of our business model."
The deal, which is subject to regulatory approval, is
expected to close during the first half of 2013.