Marathon Petroleum forms joint venture to construct 560-mile crude oil pipeline originating in Bakken Shale in North Dakota
Clients Marathon Petroleum Corporation
Jones Day represented Marathon Petroleum Corporation in the formation of a joint venture with Enbridge Energy Partners, LP to construct an approximately 560-mile, $2.6 billion interstate crude oil pipeline originating in the Bakken Shale region of North Dakota and extending through Minnesota to Wisconsin, where it will supply crude oil to refineries in the United States and eastern Canada.
Marathon will fund approximately 37.5% of the construction, and has committed to be the anchor shipper in order to support the project. The pipeline is anticipated to become operational in the first quarter of 2016, and at such time, Marathon will have an approximate 27% interest in the pipeline system, with a continuing option to increase its interest by participating in future capital projects. In addition, under the joint venture, Marathon will acquire an ownership interest in Enbridge’s existing North Dakota crude pipeline system, which is comprised of 970 miles of pipeline spanning Montana, North Dakota and Minnesota.