March 22, 2018
Wolf Midstream Inc. has closed the acquisition of the previously announced agreement to acquire MEG Energy Corp.’s 50 per cent ownership interest in Access Pipeline and 100 per cent ownership in the Stonefell Terminal for $1.52 billion plus capital commitments of approximately $90 million.
With this acquisition, Wolf is the sole owner and operator of Access.
Wolf completed the acquisition of its initial 50 per cent interest in Access in October 2016. The transaction includes an initial term commitment of 30 years from MEG with respect to transportation services on Access and the use of the Stonefell Terminal.
The Access Pipeline system includes pipelines that transport blended bitumen and diluent between the Christina Lakearea of Northeastern Alberta and Edmonton. The Stonefell Terminal connects MEG’s production facilities, through the Access system, to additional distribution connections, serving as a launch point for large volumes of blended products to reach multiple markets.
“As the Access owner and operator, Wolf now has a tremendous opportunity to expand Access Pipeline’s capacity for bitumen blend and diluent to serve both MEG and Devon as well as third parties,” said Gord Salahor, Wolf’s Chief Executive Officer. “We are pleased that this transaction has positioned MEG as an anchor tenant for solvent service on the unutilized Access 16-inch pipeline and prompted additional interest among both natural gas liquids suppliers and oil sands producers.”
The transaction was funded by Wolf through an investment by Canada Pension Plan Investment Board (CPPIB) of $703 million, third-party debt financing and cash on hand.
(Wolf Midstream Inc.)