Deals
Pembina to Buy Kinder Morgan’s Oil Assets for $3.3 Billion
- Acquisition gives Pembina major Alberta oil-storage business
- Deal marks latest international company to pull out of Canada
An oil tank stands near the Kinder Morgan Trans Mountain pipeline expansion site in Burnaby, British Columbia.
Photographer: Ben Nelms/BloombergThis article is for subscribers only.
Pembina Pipeline Corp. increased its bet on the future of Canada’s turbulent oil-sands industry, agreeing to buy Kinder Morgan Inc.’s Canadian unit and the U.S. portion of a key pipeline for about C$4.35 billion ($3.3 billion).
The deal makes Pembina a major player in the oil-storage business, giving it 10 million barrels of capacity in the crude complex near Edmonton, Alberta, a key hub for oil-sands producers. With the takeover of Kinder’s Cochin Pipeline system, Pembina also becomes a key provider of the condensate that oil-sands companies need to blend with their thick crude to enable it to flow through pipelines.