Spectra Energy Corp said it will spend $1.49 billion to purchase the Express-Platte System, one of the three major pipelines that move crude oil from Western Canada to refineries in the Rocky Mountain and Midwest regions in the United States.The purchase, which comprises $1.25 billion in cash and $240 million in debt, will give Spectra a foothold in the rapidly expanding North American crude oil pipeline market and lower its dependence on natural gas."Given today's regulatory environment, the fact that these assets are in the ground already is a huge advantage as we enter the sector," Chief Executive Gregory Ebel said on a conference call with analysts.Canada has only three major pipelines that take conventional and oil sands crude into the Midwest, and fears are mounting that the export of Canadian crude will be constrained due to pipeline project delays, even as production burgeons.
Spectra Energy Corp (Spectra Energy) through its subsidiaries and equity affiliates, owns and operates a portfolio of complementary natural gas-related energy assets and is a natural gas infrastructure company. Shares of SE fell by 0.59% or $-0.16/share to $27.18. In the past year, the shares have traded as low as $26.56 and as high as $32.27. On average, 3174030 shares of SE exchange hands on a given day and today's volume is recorded at 2651947.
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