Inter Pipeline completes acquisition of remaining interest in the Cold Lake pipeline system
On December 16, 2016, Inter Pipeline Ltd. ("Inter Pipeline") announced the successful closing of its acquisition of the remaining 15% interest in the Cold Lake pipeline system from Canadian Natural Resources Limited ("Canadian Natural") for C$527.5 million, subject to closing adjustments. As a result of the acquisition, Inter Pipeline assumes 100% ownership of the 1,400 km pipeline system, which is the largest transporter of Cold Lake area bitumen production.
Canadian Natural received C$350 million in cash and C$177.5 million through the issuance of 6,417,740 Inter Pipeline common shares in consideration for its Cold Lake ownership interest. Funding for the cash component of the acquisition was provided from proceeds of a new 10-year medium term note offering.
Concurrent with closing of this acquisition, Inter Pipeline entered into a binding long-term take-or-pay agreement with Canadian Natural to transport diluent and bitumen blend for its Kirby North SAGD oil sands project. The agreement will trigger the construction of a new C$125 million pipeline connection to the Kirby North production facility, with service targeted for the first quarter of 2020.
Canadian Natural is a senior oil and natural gas production company, with continuing operations in its core areas located in Western Canada, the U.K. portion of the North Sea and Offshore Africa.
Inter Pipeline is a major petroleum transportation, natural gas liquids processing, and bulk liquid storage business based in Calgary, Alberta.
Further information can be found on Inter Pipeline's website.