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.