Canadian transportation and storage infrastructure firm Pembina has announced it is purchasing Kinder Morgan Canada and its US portion of the Cochin Pipeline in a $4.35 billion (€2.93 billion) deal.
Kinder Morgan Canada is an energy infrastructure company which owns part of the Cochin Pipeline, a 1,810-mile multi-product pipeline which spans from Alberta to Ontario. Through the deal, Pembina will acquire strategically-located assets including the Cochin Pipeline System, the Edmonton Storage and terminal business and Vancouver Wharves, a bulk storage and export/import business.
The Cochin mainline system connects Pembina’s Channahon, Bakken and Edmonton area assets and is also connected to markets in Mont Belvieu, Conway and Edmonton. There will be potential to connect the eastern leg of the Cochin Pipeline System to Pembina’s assets in Sarnia, Ontario.
This major agreement makes Pembina a key player in the oil storage sector, giving it around 10 million barrels of capacity in the crude complex near Edmonton, Alberta, a key hub for oilsands producers. It also makes the company a key provider of the condensate used by oilsands companies to blend with their thick crude oil to enable it to flow through pipelines.
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