Kinder sells Corridor shares

Kinder Morgan has entered into an agreement to sell the shares of the Corridor Pipeline System to Inter Pipeline Fund in Canada for approximately C$760 million including debt.

Additionally, Inter Pipeline Fund will assume all of the debt associated with the expansion currently taking place on Corridor.

The pipeline transports diluted bitumen from the Athabasca Oil Sands Project (AOSP) near Fort McMurray, Alberta, to the Scotford Upgrader near FortSaskatchewan, Alberta.

The transaction does not include any other Kinder Morgan Canada assets.

‘We are diligently moving forward on plans to expand both the Trans Mountain and the Express/Platte pipeline systems, and we will continue to pursue additional infrastructure opportunities related to increasing oils ands production,’ stated Kinder Morgan Canada President Ian Anderson. ‘For example, we are in the midst of constructing our first major merchant terminal in Edmonton, Alberta, and we will continue to pursue additional pipeline and terminal projects.’

The transaction is subject to certain closing conditions and regulatory approvals, as well as a right of first refusal, and is expected to close in the second quarter of this year. The agreement to sell Corridor has been approved by the KMI board of directors and the sponsors of the company’s pending privatisation transaction.