Spectra Energy Corp announced an agreement to drop down 50 percent of the Express-Platte Pipeline System (Express-Platte System) to Spectra Energy Partners for approximately $555 million in cash, approximately $139 million in newly issued partnership units, and approximately $129 million of acquired Express-Platte System debt.

“Spectra Energy’s drop-down of 50 percent of the Express-Platte System is in line with our expectation of dropping down more than $2 billion of fee-based assets over the next couple of years to create value for both SE and SEP investors,” 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.

Tags: Spectra Energy