(Adds detail throughout, updates share price. In U.S. dollars
CALGARY, Alberta, Sept 2 Pembina Pipeline Corp
, which operates regional pipelines in western Canada,
said on Tuesday it has agreed to pay $650 million to acquire
Vantage pipeline system, which carries up to 40,000 barrels per
day of natural gas liquids from North Dakota's Bakken shale
field to southern Alberta.
Pembina is also buying Mistral Midstream Inc's interest in a
Saskatchewan ethane processing plant from private-equity fund
Riverstone Holdings LLC. The plant, which will connect to the
Vantage system, is expected to supply about 4,500 barrels of
ethane per day when it begins production in mid-2015.
Along with the acquisition, the company said it also plans
to build a 37,500-barrel-per-day propane export terminal in
Portland, Oregon, for $500 million. The facility is expected to
be in service by 2018.
The acquisition of the recently built Vantage line gives the
company access to ethane from the Bakken field. Ethane is a key
petrochemical feedstock used to make plastic and other
The pipeline runs from Tioga, North Dakota, to the Empress
pipeline hub in southeastern Alberta.
Pembina said the deal was expected to add to cash flow per
share in 2016.
The company said it would pay $395 million in cash and $255
million in stock, as well as assuming $224 million in long-term
debt carried by the pipeline.
CIBC is the financial adviser to Pembina.
Pembina shares were up 2.5 percent at C$51.20 by midmorning
on the Toronto Stock Exchange.
(Reporting by Scott Haggett and Narottam Medhora in Bangalore;
Editing by Jonathan Oatis)