Inter Pipeline Ltd. recently announced that it has entered into an agreement to acquire Canadian Natural Resources Limited’s 15 percent interest in the Cold Lake pipeline system for CAD $527.5 million, subject to closing adjustments. As a result, Inter Pipeline will own 100 percent of the Cold Lake pipeline system. The transaction is expected to close before the end of the year and is subject to customary closing conditions.
Additionally, upon closing of the Cold Lake acquisition, Inter Pipeline will enter into a binding long-term take-or-pay agreement with Canadian Natural to transport diluent and bitumen blend for its Kirby North SAGD (steam-assisted gravity drainage) oil sands project, located approximately 85 km northeast of Lac La Biche in Alberta. The agreement will trigger the construction of a new CAD $125 million pipeline connection to the Kirby North production facility, with service targeted for the first quarter of 2020.