Enbridge has completed its purchase of the outstanding shares in Spearhead Pipeline from BP Pipelines North America. Enbridge bought a 90% interest in what was then known as the Cushing-to-Chicago pipeline system from BP Pipelines in 2003; the company has now acquired BP Pipelines’ remaining 10% ownership in the renamed line for a cost of $12.4 million, bringing the total purchase price to $124.4 million.
Enbridge intends to reverse the flow of the pipeline to transport Canadian crude oil south from the company’s mainline system at Chicago to the storage and refining hub at Cushing, Oklahoma. The existing 1050-km, 22- and 24-in diameter, pipeline has historically operated in south-to-north service, but recently has been largely inactive. Reversing the pipeline and putting it back in service will provide Canadian crude oil producers and shippers access to markets in the Midcontinent and southern United States.