Spectra Energy Corp. (NYSE: SE) will acquire the Express-Platte Pipeline System from Borealis Infrastructure, the Ontario Teachers’ Pension Plan and Kinder Morgan Energy Partners for $1.49 billion.
The purchase price is made up of $1.25 billion in cash plus $250 million in debt assumption.
The pipeline is 1,717 miles long, starting in Hardisty, Alberta and ending in Wood River, Ill. It carries crude oil to U.S. refining markets in the Rockies area, with a capacity of 280,000 barrels per day.
Skadden Arps Slate Meagher & Flom LLP advised Spectra on the deal, which was announced late Dec. 11.
The deal is one of several in the hot energy sector. On Dec. 5, Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) announced it would spend $10.3 billion to buy Plains Exploration & Production Co. (NYSE: PXP) and McMoRan Exploration Co. (NYSE: MMR). Also on Dec. 5, Plains All American Pipeline LP (NYSE: PAA) agreed to acquire four crude oil rail terminals for about $500 million.
For more coverage of the energy sector, see “Fracking Fuels Energy Deals.”