Enbridge Sells Gathering Pipeline Network to Tundra Marketing

Enbridge Inc. is selling a pipeline network in Saskatchewan and Manitoba to Tundra Energy Marketing Ltd. for C$1.08 billion ($820 million) as Canada’s largest oil pipeline operator sells off non-core assets following the purchase of Spectra Energy Corp.

The sale is expected to close at the end of the fourth quarter, Enbridge said Thursday in a statement. The cash transaction is subject to regulatory conditions and does not include the Bakken Expansion Pipeline.

Enbridge is selling the pipeline network, which includes conduits for liquids and related facilities in southeast Saskatchewan and southwest Manitoba, following the $28 billion takeover of Spectra Energy, that will make the combined company the largest pipeline operator in North America. The sale also helps the company’s income fund finance its growth program, said Chief Financial Officer John Whelen in the statement.

“The monetization of these non-core assets at an attractive valuation provides a low-cost funding source for the Enbridge group,” Whelen said.

Enbridge shares fell 0.4 percent to C$57.72 at the close in Toronto.

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