Canada's company to buy Enbridge regional pipeline system
CALGARY, Alberta—Tundra Energy Marketing, a privately-held Canadian energy infrastructure company, said on Thursday it has agreed to buy a regional pipeline system from an affiliate of Enbridge Income Fund for $818.11 million.
The South East Saskatchewan system includes more than 994 miles of crude oil and liquids gathering pipelines, about half of which of "trunk line" that feeds into the Enbridge Mainline system and four truck terminals.
Enbridge's Mainline is the main conduit for Canadian crude barrels being shipped south to U.S. markets. The SE Saskatchewan system currently transports 175,000 barrels per day of crude to the Mainline at Cromer, Manitoba, a major hub for barrels in Canada's southern prairies region.
Once the transaction, which is expected to close in late 2016, subject to regulatory approvals, is completed Tundra will handle more than 250,000 barrels per day of crude production from Saskatchewan, Manitoba and North Dakota.
The company will also have more than 600,000 barrels of crude storage capacity and oil-by-rail loading facilities in Cromer.
"We know and understand this part of the world, the Saskatchewan portion of which is one of the most-economic oil production areas in North America," said Bryan Lankester, president of Tundra.