Skadden Steers Spectra's $1.5B US-Canada Pipeline Buy

Law360, New York (December 11, 2012, 2:09 PM EST) -- Spectra Energy Corp. said Tuesday it will pay $1.49 billion to buy the Express-Platte System, one of three major pipelines that bring Canadian crude oil to U.S. refineries, from Kinder Morgan Energy Partners LP and two Canadian pension plans to grow its crude delivery system in the American West.

The acquisition, which includes $1.25 billion in cash and $240 million in debt, gives Spectra its first presence in a tightening market, as Canadian oil production continues to outpace new cross-border pipeline capacity.

The 1,717-mile pipeline, which...
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