Inter Pipeline to Acquire Milk River Pipeline System
(P&GJ) — Inter Pipeline announced it has agreed to acquire the Milk River pipeline system from Plains All American Pipeline in exchange for its 100 percent ownership interest in the Empress II and 50 percent ownership interest in the Empress V straddle plants.
Plains will also pay Inter Pipeline cash proceeds of $35 million. Closing of this transaction is expected to occur in early 2021 following completion of customary conditions.
"The Milk River pipeline system has a natural alignment with our Bow River system and this acquisition will improve our access to the Montana refining region, an important delivery market for Inter Pipeline and our customers," said Christian Bayle, President and Chief Executive Officer of Inter Pipeline.
The Milk River pipeline system is comprised of two 10-mile pipelines with current throughput volume of approximately 90,000 barrels per day and links Inter Pipeline's Bow River pipeline system from Milk River, Alberta to the U.S./Canadian border west of Coutts, Alberta.
The transaction also includes pumping and metering facilities, two crude oil storage tanks and truck unloading facilities.
The Empress II and Empress V straddle plants are geographically remote compared to Inter Pipeline's core natural gas liquids processing assets. These two straddle plants, currently operated by Plains are located near Empress, Alberta on the eastern leg of the TC Energy Alberta System.
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