Through the transaction, Pembina will acquire strategically located assets including the US portion of the Cochin Pipeline System, the Edmonton storage and terminal business, and the Vancouver Wharves bulk storage and export–import business.
The option for Pembina to acquire 100 per cent of Cochin, which is one of two significant cross-border condensate pipelines, was a unique opportunity.
The Cochin Pipeline System complements Pembina’s existing condensate infrastructure in western Canada and extends the company’s reach into the US.
Pembina’s President and CEO Mick Dilger said the acquisition is highly strategic for the company and will create long-term value as it strengthens Pembina’s financial guardrails.
“It represents an ideal opportunity to continue building on our low-risk, long-term, fee-for-service business model while extending our reach into the US through a highly desirable cross-border pipeline,” said Mr Dilger.
According to the transaction, Kinder Morgan Canada is valued at approximately CA$2.3 billion (US$1.7 billion) and Cochin at approximately CA$2.05 billion (US$1.6 billion) for cash consideration.
The transaction has been unanimously approved by the board of directors and is expected to close in the first half of 2020.
For more information visit the Pembina website.
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