- FMA
- The Fabricator
- FABTECH
- Canadian Metalworking
Calgary-based pipeline company to acquire Vantage pipeline system
The US$650-million transaction includes interest in a Saskatchewan Ethane Extraction Plant.
- September 2, 2014
- News Release
- Metalworking
Pembina Pipeline Corp., a Calgary-based energy company, is set to acquire the Vantage 700-kilometre pipeline system. Vantage is a recently constructed, 40,000 barrel per day, high vapour pressure pipeline that originates in Tioga, North Dakota and terminates near Empress, Alberta, which gives access to the U.S. state's North Bakken formation for natural gas liquids. This fee-for-service pipeline is expected to have a maximum capacity of 60,000 barrels per day.
The US$650-million transaction with private equity firm Riverstone Holdings LLC also includes Mistral Midstream Inc.'s interest in the Saskatchewan Ethane Extraction Plant, a liquid byproduct of natural gas production. The Saskatchewan extraction plant for ethane will eventually connect to the Vantage pipeline system.
Pembina says the Vantage pipeline system links a growing supply of ethane from North Dakota to the petrochemical market in Alberta.
"We have watched the development of these assets with great interest as they represent an excellent opportunity to expand our footprint into one of the most promising hydrocarbon plays in North America and, as such, the transaction is a low-risk, logical step-out for Pembina,'' president and CEO Mick Dilger said in a news release Monday.
Pembina said the transaction is expected to add cash flow per share in 2016.
The deal is subject to regulatory approvals, including from the National Energy Board and the Canada Transportation Act. It is expected to close in the fourth quarter of 2014.
Stuart Taylor, Pembina's Senior Vice President, NGL & Natural Gas Facilities commented, "SEEP and its associated pipeline infrastructure are very attractive to Pembina. With these assets, we'll be making a low-risk entry into the prolific Bakken play in Saskatchewan and we'll be adding another fee-for-service gas plant to our portfolio."
Pembina owns and operates pipelines that transport various hydrocarbon liquids including conventional and synthetic crude oil, heavy oil and oil sands products, condensate and natural gas liquids produced in Western Canada.
Source Pembina Pipeline Corporation
subscribe now
Keep up to date with the latest news, events, and technology for all things metal from our pair of monthly magazines written specifically for Canadian manufacturers!
Start Your Free Subscription- Stay connected from anywhere
Easily access valuable industry resources now with full access to the digital edition of Canadian Metalworking.
Easily access valuable industry resources now with full access to the digital edition of Canadian Fabricating & Welding.
- Trending Articles
Automating additive manufacturing
Sustainability Analyzer Tool helps users measure and reduce carbon footprint
CTMA launches another round of Career-Ready program
Sandvik Coromant hosts workforce development event empowering young women in manufacturing
GF Machining Solutions names managing director and head of market region North and Central Americas
- Industry Events
MME Winnipeg
- April 30, 2024
- Winnipeg, ON Canada
CTMA Economic Uncertainty: Helping You Navigate Windsor Seminar
- April 30, 2024
- Windsor, ON Canada
CTMA Economic Uncertainty: Helping You Navigate Kitchener Seminar
- May 2, 2024
- Kitchener, ON Canada
Automate 2024
- May 6 - 9, 2024
- Chicago, IL
ANCA Open House
- May 7 - 8, 2024
- Wixom, MI