Inter Pipeline closes C$1.35 billion acquisition of Canadian NGL midstream business

On September 23, 2016, Inter Pipeline Ltd. ("Inter Pipeline") announced the successful closing of its acquisition of the shares of The Williams Companies Inc.'s and Williams Partners L.P.'s Canadian natural gas liquids ("NGL") midstream businesses ("Williams Canada") for cash consideration of $1.35 billion, subject to closing adjustments.

The strategic acquisition, announced August 8, 2016, includes two liquids extraction plants located near Fort McMurray, Alberta, a fractionator near Redwater, Alberta and a pipeline system that connects these facilities. The two extraction plants have the capacity to recover approximately 40,000 barrels per day ("b/d") of NGL and olefins from the upgrader "offgas"— a gas stream created when oil sands bitumen is heated to high temperatures though an upgrading process. The liquids mix is then separated into marketable products at the Redwater fractionator and sold across North America.

Inter Pipeline also assumes the responsibility for the potential construction of a C$1.85 billion propane dehydrogenation facility located near the Redwater fractionator. The proposed plant will produce polymer-grade propylene using propane derived from oil sands offgas as feedstock.

The transaction was financed by proceeds from a C$600 million subscription receipt offering, C$350 million of new term debt and the balance drawn under Inter Pipeline's C$1.5 billion committed revolving credit facility, which was recently increased from C$1.25 billion.

Inter Pipeline is a major petroleum transportation, natural gas liquids extraction, and bulk liquid storage business based in Calgary, Alberta, Canada.

Williams Partners is an industry-leading, large-cap natural gas infrastructure master limited partnership with a strong growth outlook and major positions in key U.S. supply basins and also in Canada. Williams Partners has operations across the natural gas value chain from gathering, processing and interstate transportation of natural gas and natural gas liquids to petchem production of ethylene, propylene and other olefins. Williams Partners owns and operates more than 33,000 miles of pipelines system wide – including the nation's largest volume and fastest growing pipeline – providing natural gas for clean-power generation, heating and industrial use.

Further information can be found on Marketwired's website.