Inter Pipeline acquires Canadian NGL midstream business

Inter Pipeline will acquire shares in The Williams Companies and Williams Partners Canadian NGL midstream business for $1.35 billion.
Williams Canada pioneered the process of extracting NGL and olefin from offgas, a by-product of bitumen upgrading operations. The assets include two liquids extraction plants located near Fort McMurray, Alberta, a fractionator near Redwater, Alberta and a pipeline system that connects these facilities.
The two extraction plants have the capacity to recover approximately 40,000 barrels per day of NGL and olefins from the upgrader offgas. The liquids mix is then separated into marketable products at the Redwater fractionator and sold across North America.
Christian Bavle, Inter Pipeline’s president and CEO, says: ‘Consistent with our disciplined acquisition strategy, we are purchasing this unique and attractive business at a low period in the commodity cycle, and well below original cost.’