Inter Pipeline has completed the acquisition of the Milk River pipeline system from Plains Midstream Canada ULC, in exchange for its 100% ownership interest in the Empress II and 50% ownership interest in the Empress V straddle plants.
Inter Pipeline also received cash proceeds of approximately $35m, which will be used to reduce outstanding debt.
The Milk River pipeline system provides an important link between Inter Pipeline’s Bow River pipeline system and the US/Canadian border west of Coutts, Alberta.
The Milk River system is primarily comprised of two 16 km pipelines with throughput volume of approximately 90,000 barrels per day, the majority of which is sourced from the Bow River system.
Inter Pipeline said in a statement: “This high degree of integration is expected to result in meaningful operational and commercial synergies with Inter Pipeline’s existing conventional oil transportation business.”
For more information visit: www.interpipeline.com
