Kingston Midstream Ltd.’s wholly-owned subsidiary Kingston Midstream Alberta Ltd. is buying Rangeland Midstream Canada Ltd., the proprietor of Alberta’s Marten Hills Pipeline, from Rangeland Vitality in an all-cash transaction.
The transaction is predicted to shut by the top of the third quarter, topic to regulatory approvals, the 2 corporations mentioned in separate information releases Tuesday. The transaction worth was not disclosed.
The Marten Hills Pipeline is situated within the Clearwater typical heavy oil play in northern Alberta and features a 12-inch diameter, 51-mile (82-kilometer) lengthy crude oil pipeline having a throughput capability of 60,000 barrels per day (bpd), in addition to a four-inch diameter 82-kilometer lengthy condensate pipeline. The pipeline began operation in 2020 and its present throughput is roughly 45,000 bpd. The pipeline companies oil producers within the Marten Hills space of Clearwater and transports their oil manufacturing to a number of markets, Kingston mentioned.
Following the closing of the transaction, Kingston mentioned its amenities within the Marten Hills space, along with its property in southeast Saskatchewan and southwest Manitoba, will have the ability to transport over 220,000 bpd to the market.
“The acquisition furthers Kingston’s vitality infrastructure platform and diversifies each its buyer base and basin publicity, whereas including important, prime quality long run crude infrastructure property in one of the crucial prolific performs in North America. We’re excited concerning the alternatives this can create as we discover new methods to proceed aiding basin members to securely and effectively carry their merchandise to market. We sit up for welcoming the sphere employees into the Kingston household”, Kingston President and CEO Jim Hand mentioned.
“We imagine that the addition of this well-constructed and trendy pipeline shall be very complementary to Kingston’s current portfolio of midstream infrastructure in western Canada”, mentioned Hartley Richardson, government chair, president and CEO of James Richardson & Sons Ltd, the dad or mum firm of Kingston.
“From the outset, our objective was to reveal to the producer neighborhood that the midstream mannequin in Canada could be executed in another way. We introduced our pipeline into service throughout essentially the most terribly unsure oil worth surroundings the market had ever skilled, and our staff labored carefully with our prospects by means of that difficult interval”, Rangeland Midstream Canada President Briton Speer mentioned.
“The whole Rangeland staff has executed an impressive job exporting our confirmed US model to Canada to develop a first-class midstream system within the prolific Clearwater/Marten Hills oil play. We’re dedicated to persevering with our model and midstream growth actions in Canada with our second firm, Rangeland Midstream Canada II”, Rangeland Vitality CEO Chris Keene mentioned.
“That is our third profitable realization with Rangeland and our first in Canada. Chris Keene and his staff have mixed their imaginative and prescient with first-rate execution, efficiently finishing our first funding in Canada and attaining a gorgeous valuation”, mentioned Morriss Harm, managing companion and COO of EnCap Flatrock Midstream, the monetary sponsor of Rangeland Vitality, within the Rangeland press launch.
Kingston, with operations in Alberta, Saskatchewan and Manitoba, offers vitality transportation and associated companies to the oil and fuel business in western Canada with over 1367 miles (2,200 kilometers) of crude oil and liquids pipelines, 5 crude oil terminals, and over 600,000 barrels of crude oil storage and loading capability, based on the corporate.
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