• 3 hours OPEC, Russia Said To Announce Oil Pact Extension On Nov 30
  • 6 hours Wintershall And LetterOne In Talks For $12B Oil, Gas Merger
  • 8 hours India Exempts State Oil Firms Mergers From Competition Approval
  • 10 hours Turkey Targets $5B Investment In Wind Energy By End-2017
  • 12 hours Weatherford Looks To Sell Assets To Ease Some Of $8B Debt
  • 13 hours OPEC Set To Move Fast On Cut Extension Decision
  • 16 hours Nigeria Makes First Step Away From Oil
  • 1 day Russia Approves Profit-Based Oil Tax For 2019
  • 1 day French Strike Disrupts Exxon And Total’s Oil Product Shipments
  • 1 day Kurdistan’s Oil Exports Still Below Pre-Conflict Levels
  • 1 day Oil Production Cuts Taking A Toll On Russia’s Economy
  • 2 days Aramco In Talks With Chinese Petrochemical Producers
  • 2 days Federal Judge Grants Go-Ahead On Keystone XL Lawsuit
  • 2 days Maduro Names Chavez’ Cousin As Citgo Boss
  • 2 days Bidding Action Heats Up In UK’s Continental Shelf
  • 2 days Keystone Pipeline Restart Still Unknown
  • 2 days UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 2 days Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 2 days Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 3 days German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 3 days Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 3 days Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 3 days Oil Prices Rise After API Reports Major Crude Draw
  • 3 days Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 3 days Gazprom Speaks Out Against OPEC Production Cut Extension
  • 3 days Statoil Looks To Lighter Oil To Boost Profitability
  • 4 days Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 4 days Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 4 days Whitefish Energy Suspends Work In Puerto Rico
  • 4 days U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 4 days Thanksgiving Gas Prices At 3-Year High
  • 4 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 4 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 5 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 5 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 5 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 5 days ConocoPhillips Sets Price Ceiling For New Projects
  • 7 days Shell Oil Trading Head Steps Down After 29 Years
  • 7 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 7 days Statoil To Boost Exploration Drilling Offshore Norway In 2018

Enbridge Sells Key Pipeline for $1 Billion

Pipeline construction

Canadian pipeline giant Enbridge has agreed to offload one of its key networks, in Saskatchewan, for US$1.08 billion. The buyer is Tundra Energy, a private energy infrastructure company. The proceeds of the deal will go towards funding Enbridge’s takeover of U.S. Spectra Energy, worth US$28 billion.

The South East Saskatchewan pipeline system includes some 1,600 km of pipelines gathering crude oil and other liquid hydrocarbons, one trunk line, and four truck terminals, spanning Saskatchewan and part of Manitoba. According to the buyer of the system, its average daily throughput to Enbridge’s mainline in Manitoba is about 175,000 barrels of crude. The system also includes an extension to the Bakken shale in the U.S., but this extension is not included in the acquisition.

For Enbridge, the deal represents part of a divestment plan envisaging the sale of assets worth US$2 billion, with all the proceeds going towards the funding of the Spectra Energy deal – a merger that will create the largest energy infrastructure company in North America, according to the Globe and Mail. When the deal is closed, Enbridge shareholders will own 57 percent of the company, while Spectra holders will have the remaining 43 percent.

The company will have assets in crude oil, liquids and natural gas pipelines, terminal and midstream operations. The company will also have a regulated utility portfolio and renewable energy operations.

Meanwhile, Enbridge is awaiting the decision of the Canadian federal government on its proposed Northern Gateway pipeline, which was suspended by a court earlier this year. The court’s ruling was that the previous Canadian government, which had given the go-ahead to Northern Gateway, did not consult First Nations fully.

Northern Gateway, worth about US$6 billion, is one of several pipelines that Trudeau’s government will have to consider in the face of widespread public opposition to any kind of oil infrastructure projects, finding a balance between the economic benefits of these projects and the opposition.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News