Inter Pipeline has closed its purchase of the Milk River pipeline system from Plains Midstream Canada.
This deal was announced in September 2020. In exchange for the sale, Inter Pipeline also sold its 100% interest in the Empress II straddle plant and its 50% interest in the Empress V straddle plant. The company also paid C$35 million (€22.4 million) for the straddle facilities to Plains Midstream. Inter Pipeline said it will use the cash to pay down its debt
The Milk River pipeline system comprises two 16 km-long pipelines with a capacity of around 90,000 bpd. It links the Inter Pipeline's Bow River pipeline system with the US/Canadian border.
Inter Pipeline claims that "This high degree of integration is expected to create substantial synergies with Inter Pipeline's existing conventional oil transportation business".
Inter Pipeline announced this news on 1 June 2021, the same day it announced a takeover deal with Pembina. The agreement will see Pembina pay C$8.3 billion (€5.64 billion) C$19.45 a share for Inter Pipeline.
