The 1,717 mile long Express-Platte crude oil system with a capacity to deliver 280,000 barrels a day of crude oil runs from Hardisty in Alberta, Canada to Wood River in Illinois, US.
The pipeline system includes the Express and Platte crude oil pipelines and carries crude oil to the refining markets in the Rocky Mountain states.
The Platte pipeline interconnects with the Express pipeline in Casper, Wyoming, to supply crude oil produced from the Bakken and Western Canada to refiners in the Midwest.
Spectra Energy president and chief executive officer Greg Ebel said the acquisition of the pipeline is beneficial for the company’s shareholders, and will expand its crude oil transportation and storage assets portfolio.
"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."
