Marathon agrees to fund 37.5 pct. of oil pipeline

Posted Monday, November 25, 2013 --- 6:26 p.m.

FINDLAY, Ohio (AP) -- Marathon Petroleum Corp. has agreed to pay for more than a third of the construction of the Sandpiper pipeline.

MPC and Enbridge Energy Partners LP say Marathon will be an anchor shipper and fund 37.5 percent of the cost.

The proposed $2.6 billion pipeline would carry crude oil from North Dakota across northern Minnesota to Wisconsin. It would extend 610 miles from the Bakken oilfields to an Enbridge terminal in Superior, Wis.

Sandpiper is scheduled to go online in early 2016.

In exchange for Marathon's commitment to take part in the open season for Sandpiper and its investment, it will earn about 27 percent interest in Enbridge's North Dakota System when the Sandpiper pipeline is done.

MPC will also have the option to increase its ownership interest to 30 percent.

Copyright 2013: Associated Press

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