Energy infrastructure company Inter Pipeline has signed a deal to acquire the Milk River pipeline system from Plains All American Pipeline subsidiary Plains Midstream Canada.
Inter Pipeline has agreed to acquire the pipeline in exchange for its 100% ownership interest in the Empress II and 50% ownership interest in the Empress V straddle plants.
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Plains Midstream Canada will also pay Inter Pipeline a cash sum of $35m.
The Milk River pipeline system comprises two 16km pipelines with current throughput volume of about 90,000bpd.
It links Inter Pipeline’s Bow River pipeline system from Milk River in Alberta, Canada to the US border.
As part of the deal, the energy infrastructure company will also buy pumping and metering facilities, two crude oil storage tanks, as well as truck unloading facilities.
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By GlobalDataExpected to be closed early next year, the transaction is, however, subject to customary closing conditions.
Inter Pipeline president and CEO Christian Bayle said: “This transaction is expected to be accretive to funds from operations and provide meaningful operational and commercial synergies with our existing conventional oil transportation business.
“The Milk River pipeline system has a natural alignment with our Bow River system and this acquisition will improve our access to the Montana refining region, an important delivery market for Inter Pipeline and our customers.”
Last week, Inter Pipeline signed a definitive agreement to sell a significant portion of its European bulk energy storage assets to Spanish company CLH Group for £420m (around $715m).
In December 2016, Inter Pipeline signed an agreement to acquire Canadian Natural Resources’ 15% interest in the Cold Lake pipeline system for $527.5m.
