September 29, 2016 - 4:45 PM
CALGARY - Tundra Energy Marketing Ltd. announced it has reached an agreement to buy the South East Saskatchewan Pipeline System from Enbridge Income Fund Holdings for $1.075 billion in cash.
Tundra said the deal is expected to close in late 2016, subject to various regulatory approvals.
The South East Saskatchewan Pipeline System includes over 1,600 kilometres of crude oil and liquids gathering pipelines, approximately 547 kilometres of trunk line and four truck terminals.
The system currently transports approximately 175,000 barrels of crude oil per day to Enbridge's Mainline system at Cromer, Man.
Following the close of the deal, Tundra says it will handle over 250,000 barrels per day of crude oil production from Saskatchewan, Manitoba and North Dakota.
All Enbridge employees currently working on the South East Saskatchewan Pipeline System are expected to join Tundra.
News from © The Canadian Press, 2016