CALGARY — Inter Pipeline Ltd. has signed a deal to acquire the Milk River pipeline system from a subsidiary of Plains All American Pipeline LP, in exchange for its 100 per cent ownership interest in the Empress II and 50 per cent ownership interest in the Empress V straddle plants.
Plains will also pay Inter Pipeline $35 million in cash.
The Milk River pipeline system includes two 16-kilometre pipelines with current throughput volume of about 90,000 barrels per day and links Inter Pipeline's Bow River pipeline system from Milk River, Alta., to the Canada-U.S. border.
Inter Pipeline will also acquire pumping and metering facilities, two crude oil storage tanks and truck unloading facilities as part of the deal.
The two straddle plants, which are operated by Plains and located near Empress, Alta., are on the eastern leg of the TC Energy Alberta system.
The deal is expected to close early next year.
This report by The Canadian Press was first published Sept. 28, 2020.
Companies in this story: (TSX:IPL)
The Canadian Press