Enbridge selling Saskatchewan pipeline to Tundra
Privately-held midstream company Tundra Energy Marketing will pay C$1.075 billion in cash.
The assets being sold are liquids pipelines and related facilities in southeast Saskatchewan and southwest Manitoba. These include the Saskatchewan Gathering and Weyburn gathering systems as well as the Westspur trunk line.
However, the sale does not include the Bakken Expansion Pipeline, which enables delivery of crude oil production in North Dakota to the Mainline System at Cromer, Manitoba. The transaction is expected to close around the end of the fourth quarter of 2016.
The South East Saskatchewan pipeline system includes more than 1,600 kilometers of crude oil and liquids gathering pipelines, about 547 kilometers of trunk line; and four tuck terminals.
The system currently transports about 175,000 barrels of crude oil per day to Enbridge's Mainline system at Cromer, Manitoba, where the main terminal of Tundra's Manitoba crude oil gathering system and interconnection with Enbridge's Bakken Expansion Pipeline is also located.
Enbridge Income Fund Holdings said it will re-invest proceeds from the sale in the Fund's C$9 billion portfolio of secured organic growth projects including the Wood Buffalo Extension, Athabasca Twin and Norlite projects, which are expected to come into service in 2017. ■