Tundra Energy Marketing (TEML) is set to acquire the South East Saskatchewan pipeline system from Enbridge Income Fund.
The system, which transports 175,000 barrels of crude per day to Enbridge’s Mainline system at Cromer, Manitoba, includes more than 1,600 kilometres of crude oil and liquids gathering pipelines, 547 kilometres of trunk line and four truck terminals.
Upon completion of the transaction, which is expected in late 2016, TEML will handle more than 250,000 barrels per day of crude oil production from Saskatchewan, Manitoba and North Dakota. It will also continue to have over 600,000 barrels of crude oil storage capacity and the ability to load unit trains for its customers at Cromer, Manitoba.
TEML president Bryan Lankester says: ‘TEML and its affiliated companies have operated for over 35 years in the Williston Basin. We know and understand this part of the world, the Saskatchewan portion of which is one of the most economic oil production areas in North America.
‘The acquisition of this well-cared for asset is very complementary to TEML’s existing portfolio of midstream infrastructure.’