By Josh Beckerman 

Energy Transfer Partners LP and Sunoco Logistics Partners LP agreed to a $2 billion sale of a minority stake of the Bakken Pipeline Project.

The two companies and their partner Phillips 66 also announced the completion of $2.5 billion of project-level financing for the effort.

Energy Transfer and Sunoco Logistics will sell nearly half of their 75% stake to an entity jointly owned by Enbridge Energy Partners LP and Marathon Petroleum Corp.

The project will include a roughly 1,172-mile pipeline from North Dakota to Illinois, and more than 700 miles of pipeline converted to crude service from Illinois to Texas.

Energy Transfer continues to oversee construction, while Sunoco Logistics will operate the pipeline upon completion.

Phillips 66 owns 25% of the project.

The Dakota Access Pipeline component is expected to deliver more than 470,000 barrels of crude oil per day from North Dakota.

Enbridge Energy said the deal will provide "another important link in our market access strategy" and "strong risk-adjusted returns." Marathon said the transaction will be a significant step in the growth of its midstream logistics business.

The sale is expected to close in the third quarter. Energy Transfer and Sunoco Logistics plan to use proceeds to pay down debt and fund growth projects.

Write to Josh Beckerman at josh.beckerman@wsj.com

 

(END) Dow Jones Newswires

August 02, 2016 21:27 ET (01:27 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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