Calgary 鈥� The deal to sell Enbridge Inc. and Enbridge Income Fund Inc.鈥檚 south prairie region assets to Tundra Energy Marketing Limited (TEML) for $1.075 billion in cash closed on Dec. 1. 聽
The assets sold are liquids pipelines and related facilities in southeast Saskatchewan and southwest Manitoba, and include the Saskatchewan Gathering and Weyburn gathering systems as well as the Westspur trunk line. The assets do not include the Bakken Expansion Pipeline, which enables delivery of crude oil production in North Dakota to the Enbridge Mainline System at Cromer, Manitoba.
鈥淭he sale of the Assets at an attractive valuation provides an efficient source of financing for the Enbridge group, supporting its industry leading secured growth program and displacing equity that we would otherwise need to raise through issuance of new capital,鈥� said Enbridge executive vice president and chief financial officer John Whelen. 鈥淚t also represents about one-half of the target we set in September, in conjunction with the announcement of our planned acquisition of Spectra Energy, to monetize approximately $2 billion of non-core assets to strengthen the balance sheet and provide additional financing flexibility.鈥�
The proceeds from the sale will be re-invested into organic growth projects of the Fund, including the Wood Buffalo Extension, Athabasca Twin and Norlite projects.
Shipper commercial arrangements and contracts are expected to remain in place and it is expected that crude oil and NGL volumes delivered from the assets will continue to flow onto the Enbridge Mainline at Cromer.
TEML president and CEO Bryan Lankester told Pipeline Newsthey were working towards moving the control centre back to Estevan. It had been move to Edmonton a few years ago. 鈥淧robably in Q2, about May,鈥� he said.聽
