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Inter Pipeline consolidates Cold Lake pipeline ownership

13th December 2016

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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VANCOUVER (miningweekly.com) – TSX-listed Inter Pipeline has agreed to buy Canadian Natural Resources’ 15% in the Cold Lake pipeline system for C$527.5-million.

The deal consolidates its 100% interest in the system, which serves several large oil sands producers in eastern Alberta, including Canadian Natural and Imperial Oil.

Canadian Natural will receive C$350-million in cash and $177.5-million in Inter Pipeline scrip.

The transaction is expected to close before the end of the year and is subject to customary closing conditions.

Inter Pipeline will enter a binding long-term take-or-pay agreement with Canadian Natural to transport diluent and bitumen blend for its Kirby North steam-assisted gravity drainage 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.

Edited by Samantha Herbst
Creamer Media Deputy Editor

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