Inter Pipeline has completed its acquisition of the Milk River pipeline system from Plains Midstream Canada.
The deal was first announced in September 2020. Inter Pipeline acquired the system in exchange for its 100% ownership of the Empress II straddle plant and 50% ownership of the Empress V straddle plant. Plains Midstream has also paid an additional C$35 million (€22.4 million) for the straddle plants. Inter Pipeline says that the money will be used to reduce indebtedness.
The Milk River pipeline system, which consists of two 16 km pipelines with throughput volume of around 90,000 bpd, links Inter Pipeline’s Bow River pipeline system and the US/Canadian border.
‘This high degree of integration is expected to result in meaningful operational and commercial synergies with Inter Pipeline’s existing conventional oil transportation business,’ says Inter Pipeline in a statement.
Inter Pipeline announced the news on 1 June 2021, the same day that it announced that it had reached a takeover deal with Pembina. Pembina will pay C$8.3 billion (€5.64 billion) for Inter Pipeline, the equivalent of C$19.45/share.
