Enbridge Inc. has agreed to sell Southeast Saskatchewan pipeline system to Tundra Energy Marketing Limited for $1.075 billion in cash, the Calgary-based energy pipeline company announced Thursday.
Closing of the transaction is expected to occur at the end of the fourth quarter, subject to customary closing conditions, including the Canada Transportation Act and Canadian Competition Act approvals, the company said.
The assets include the Saskatchewan Gathering, Westspur, and Weyburn pipeline systems, but do not include the Bakken Expansion Pipeline, which enables the delivery of crude oil production in North Dakota to the Mainline System at Cromer, Man.
The Southeast Saskatchewan Pipeline System includes more than 1,600 kilometers of crude oil and natural gas liquids (NGL) gathering pipelines; approximately 547 km of trunk line; and four truck terminals.
The system currently transports approximately 175,000 barrels of crude oil per day to Enbridge’s mainline system at Cromer where the main terminal of Tundra’s Manitoba crude oil gathering system and interconnection with Enbridge’s Bakken Expansion Pipeline is also located.
Following the closing of this transaction, Tundra will handle more than 250,000 barrels per day of crude oil production from Saskatchewan, Manitoba and North Dakota. It will also continue to have over 600,000 barrels of crude oil storage capacity and the ability to load unit trains for its customers at Cromer.
All employees of Enbridge currently working on the Southeast Saskatchewan System are expected to join Tundra following the closing of the transaction.
Tundra Energy Marketing Limited is a wholly-owned subsidiary of James Richardson & Sons, Limited, a Winnipeg-based private company, also active in the international grain trade, food processing, energy exploration and production, property and casualty insurance, real estate and financial services industries.
Source: BRUCE JOHNSTONE, REGINA LEADER-POST