Inter Pipeline to buy Cold Lake pipeline interest from CNRL

Inter Pipeline Ltd., Calgary, plans to buy the 15% interest in Cold Lake Pipeline Ltd. held by Canadian Natural Resources Ltd. (CNRL). The transaction also includes purchase of CNRL’s 14.7% interest in Cold Lake LP.

Expected to close by yearend, the deal will give Inter Pipeline 100% interest in the 1,400-km Cold Lake pipeline system.

CNRL will receive gross proceeds of $350 million (Can.) in cash and more than 6.4 million common shares of Inter Pipeline at an ascribed value of $177.5 million for a total value of about $527.5 million. CNRL expects an aftertax gain of about $200 million.

The transaction will not alter CNRL’s rights, pricing, and access to the Cold Lake Pipeline system.

CNRL noted that it has secured firm transportation capacity with Inter Pipeline for Kirby North production and diluents volumes, with first production at the thermal in situ oil sands project targeted for 2020 (OGJ Online, Feb. 17, 2012). It’s about 40 km southwest of Conklin, Alta.

Inter Pipeline said it will invest about $125 million in pipeline and associated facilities to connect the Kirby North production facility to Inter Pipeline’s Cold Lake and Polaris pipeline systems. The work will include construction of 25 km of 16-in. blend and 8-in. diluent laterals, and a pumping and metering facility.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...