Veresen has acquired a 50% convertible preferred interest in the Ruby pipeline system from Global Infrastructure Partners for $1.425bn.
The 680-mile Ruby pipeline system delivers US Rockies natural gas production to markets located in the western part of the country.
The pipeline starts at the Opal hub in Wyoming and extends to the Malin hub in Oregon.
It has a capacity of about 1.5 billion cubic feet per day (bcf/d) with a potential to extend up to 2bcf/d via the addition of compression.
The Malin hub is the main interconnect to the planned Pacific Connector Gas Pipeline, in which Veresen holds a 50% stake.
The remaining 50% of the Ruby pipeline system is held by El Paso Pipeline Partners, an affiliate of Kinder Morgan, via a common equity interest.
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By GlobalDataVeresen president and chief executive officer Don Althoff said: "Ruby is an excellent addition to our portfolio of assets and Ruby’s synergy to our proposed Jordan Cove LNG terminal offers tremendous upside potential.
"Veresen has been focused on identifying opportunities where we can leverage and create synergies with our existing footprint and the Ruby acquisition is consistent and aligned with this strategy."
Veresen owns and operates energy infrastructure assets throughout North America within three business segments that include pipelines, midstream and power.
The company’s pipeline transportation business features interests in three pipeline systems, the Alliance Pipeline, the Ruby Pipeline and the Alberta Ethane Gathering System.
The midstream business includes ownership stakes in a natural gas liquids extraction facility near Chicago, the Hythe/Steeprock complex, and other natural gas and natural gas liquids processing energy infrastructure.
Image: Illustrative map of Ruby Pipeline System. Photo: Courtesy of CNW Group/Veresen Inc.
