Energy Transfer Partners, L.P. (NYSE: ETP), Sunoco Logistics Partners L.P.(NYSE: SXL) and Phillips 66 (NYSE: PSX) announce the successful completion of the project-level financing of the Dakota Access Pipeline (DAPL) and Energy Transfer Crude Oil Pipeline (ETCOP) projects (collectively the “Bakken Pipeline”). The $2.5 billion facility is anticipated to provide substantially all of the remaining capital necessary to complete the projects.
The project-level financing was executed with a syndicate of financial institutions on a limited recourse basis in accordance with certain guaranties. Mainline construction of the Bakken Pipeline commenced on May 16, 2016, and it is expected to be ready for service by the end of 2016.
Through wholly owned subsidiaries, Bakken Holdings Company, LLC owns a 75 percent membership interest in each of Dakota Access, LLC and Energy Transfer Crude Oil Company, LLC, the entities responsible for developing, owning and operating the Bakken Pipeline. The remaining 25 percent of each of Dakota Access, LLC and Energy Transfer Crude Oil Company, LLC is owned by wholly owned subsidiaries of PSX. Bakken Holdings Company, LLC is owned 60 percent by a wholly owned subsidiary of ETP and 40 percent by a wholly owned subsidiary of SXL.
DAPL is expected to deliver in excess of 470,000 barrels per day of crude oil from the Bakken/Three Forks production area in North Dakota to market centers in the Midwest. DAPL will provide shippers with access to Midwestern refineries, unit-train rail loading facilities to enable deliveries to East Coast refineries, and the Gulf Coast market through an interconnection in Patoka, Illinois, with ETCOP, which will provide crude oil transportation service from the Midwest to the Sunoco Logistics Partners and Phillips 66 storage terminals located in Nederland, Texas.
