Enbridge Inc. is paying $101.9 million US to acquire a 65-per-cent stake in Olympic Pipe Line Co., a Washington state-based oil pipeline firm, from a subsidiary of BP.
The deal, which includes the assumption of debt, is expected to close by the end of the year.
Olympic owns the largest refined products pipeline in Washington, transporting about 290,000 barrels per day of gasoline, diesel and jet fuel in a 480-kilometre stretch between Blaine, Wash., and Portland.
The company is the sole supplier of jet fuel to Seattle-Tacoma International Airport and a major supplier to Portland International Airport.
BP subsidiary Arco MidCon LLC will continue to own the remaining 35-per-cent interest and BP Pipelines (North America) Inc. will remain in its role as operator.
"The investment in Olympic Pipe Line Co. is consistent with the Enbridge strategy of investing in stable energy infrastructure assets that come with strong organic growth opportunities," Enbridge Group vice-president Richard Bird said in a statement.
"This investment enables Enbridge to enter the U.S. refined products pipeline business in a growing market and new geographic region."
Calgary-based Enbridge (TSX:ENB) operates one of the world's longest crude oil and liquids transportation system.