6 things to know about Enbridge’s new $1B Saskatchewan asset sale

6 things to know about Enbridge’s new $1B Saskatchewan asset sale

By Deborah Jaremko

Sept. 30, 2016, 7:35 a.m.

http://www.jwnenergy.com/article/2016/9/6-things-know-about-enbridges-1b-saskatchewan-asset-sale/

Enbridge Income Fund announced Thursday that it has entered into an agreement to sell its liquids pipelines assets in southeast Saskatchewan to Tundra Energy Marketing Limited (TEML) for C$1.075 billion in cash.

Here are six key facts about the deal from statements by Tundra and Enbridge:

  1. The system includes over 1,600 kilometres of crude oil and liquids gathering pipelines, approximately 547 kilometres of trunk line and four truck terminals.
  2. The system currently transports approximately 175,000 bbls/d to Enbridge’s Mainline system at Cromer, Manitoba, where the main terminal of TEML’s Manitoba crude oil gathering system and interconnection with Enbridge’s Bakken Expansion Pipeline is also located.
  3. Following the closing of this transaction, TEML will handle over 250,000 bbls/d of crude oil production from Saskatchewan, Manitoba and North Dakota.
  4. All employees of Enbridge currently working on the SE Saskatchewan System are expected to join TEML following closing of the transaction.
  5. The sale “immediately addresses” about one-half of the $2-billion asset monetization target Enbridge announced along with its proposed merger with Spectra Energy, designed to strengthen the company’s balance sheet and provide additional financing flexibility.
  6. The deal is expected to close in the fourth quarter.

 

 

 

About prosperitysaskatchewan

Consultant on Saskatchewan's natural resources.

Posted on September 30, 2016, in economic impact, oil, political. Bookmark the permalink. Leave a comment.

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