Spectra Energy (NYSE: SE ) and MLP partner Spectra Energy Partners (NYSE: SEP ) announced today that they've significantly expanded both the scale and length of contracts on their Express crude oil pipeline stretching from Canada to the United States.
As companiwes bid in for their own piece of the pipeline, Spectra has pushed its contracted commitments up from 119,000 barrels per bay (mbpd) to 225 mpbd, a 90% increase in flow. At the same time, the average length of contracts (to be phased in over the next two years) jumped from 1.5 years to 11 years.
The success of this open season demonstrates the Express pipeline's strong positioning to meet growing oil transportation needs," said President of Spectra Energy Liquids Duane Rae. "We received shipping requests well in excess of the pipeline's capacity."
As a result of this significant uptick in sales, Spectra expects its overall Express-Platte pipeline to pull in around $160 million in 2014 EBITDA.