09 Aug Inter Pipeline acquires Williams’ natural gas assets for $1b
Calgary-based Inter Pipeline Ltd. (TSX:IPL) has announced it has entered into an agreement to acquire the Canadian oil and gas assets of the Williams pipeline companies for US$1 billion.
The purchase includes extraction and processing facilities in the oil sands in Alberta, in addition to around 260 miles of pipelines from Williams and its master-limited partnership unit, Williams Partners LP.
Williams and Williams Partners said they plan to use the cash to decrease debt.
“This accretive acquisition is a highly complementary addition to our existing NGL extraction business,” said Christian Bayle, Inter Pipeline president and CEO.
“Consistent with our disciplined acquisition strategy, we are purchasing this unique and attractive business at a low period in the commodity cycle, and well below original cost. This positions Inter Pipeline to significantly benefit as energy prices strengthen.”
Williams said it spent around $2.5 billion on the development of its Canadian business over the past 16 years.
Inter Pipeline will also acquire a proposed $1.85 billion facility near Redwater that is designed to turn propane into propylene pellets used in plastics manufacturing.