Spectra Energy Closes On 50% Of Express-Platte Pipeline System Drop-Down

(RTTNews) - Spectra Energy Corp (SE) Friday announced final closing on the drop-down of 50 percent of the Express-Platte crude oil pipeline system to its master limited partnership, Spectra Energy Partners, LP (SEP), for about $410 million in cash, $319 million in newly issed partnership units, and $129 million of acquired Express-Platte System debt.

"This initial phase of the Express-Platte System drop-down sets the stage for our larger plan to drop our remaining U.S. Transportation and Storage assets to our Master Limited Partnership," said Greg Ebel, president and chief executive officer, Spectra Energy Corp.

The 1,717-mile Express-Platte System, which begins in Hardisty, Alberta, and terminates in Wood River, Illinois, comprises the Express and Platte crude oil pipelines and is one of just three major pipeline systems moving crude oil from western Canada to Rockies and Midwest refineries and markets.

The Express pipeline carries crude oil to U.S. refining markets in the Rockies area, specifically Billings and Laurel, Montana, and Casper, Wyoming. The pipeline's capacity is 280,000 barrels a day.