Marathon Petroleum has announced the sale of some of its terminal, pipeline and storage assets to MPLX for $2.02bn.
The assets divested by Marathon Petroleum include 62 light-product terminals with approximately 24 million barrels of storage capacity as well as 11 pipeline systems consisting of 604 miles of pipeline.
The transaction also includes the sale of 73 tanks with approximately 7.8 million barrels of storage capacity; a crude oil truck unloading facility at MPC's refinery in Canton, Ohio; and eight natural gas liquids storage caverns in Woodhaven, Michigan, with approximately 1.8 million barrels of capacity.
Marathon Petroleum chairman, president and CEO Gary Heminger said: "This drop-down of additional high-quality logistics assets to MPLX represents the first of several drops expected to occur in 2017, and is an important part of our plan to unlock the value of our midstream business for investors.
"The stable, fee-based earnings from these assets will add scale and diversification to MPLX's portfolio of high-quality midstream assets."
Marathon said it will receive $504m in MPLX stock and $1.51bn in cash for the assets.
Separately, PLX Pipe Line (MPLH), a subsidiary of MPLX, has completed acquisition of Enbridge Pipelines’ (Ozark) Ozark Pipeline for approximately $220m.
The 433-mile, 22-inch Ozark crude oil pipeline starts from Cushing, Oklahoma, and terminating in Wood River, Illinois. It has capacity to transport approximately 230,000 barrels per day (bpd).
MPLX plans to increase the capacity of the pipeline to approximately 345,000 bpd with expansion project planned to be completed in the second quarter of 2018.
MPLX is a master limited partnership formed by Marathon Petroleum in 2012 to own, operate, develop and acquire midstream energy infrastructure assets.
Image: Marathon Petroleum sold some of its pipeline and storage assets in the US to MPLX. Photo: courtesy of xedos4/FreeDigitalPhotos.net.