One of Prince Rupert’s newest industrial tenants is growing larger after Pembina Pipeline Corporation announced it has entred into an agreement to buy Veresen Inc., a North American energy infrastructure company that owns natural gas pipelines and infrastructure.
The deal includes the $9.7 billion purchase of Veresen, including its debt and preferred shares, by Pembina and combined, the two create “one of the largest energy infrastructure companies in Canada,” stated a news release on May 1.
Pembina Infrastructure and Logistics, a subsidiary of Pembina Pipelines, signed a Letter of Intent with Prince Rupert Legacy (a subsidiary of the City of Prince Rupert) in April to build a $125 million to $175 million liquid propane (LPG) export terminal on Watson Island. The terminal would ship 20,000 barrels per day of LPG export.
“This transaction is highly strategic for Pembina and Veresen alike, providing clear visibility to create long-term value for our respective shareholders,” said Randy Findlay, board chair at Pembina in a news release.
“It represents an ideal opportunity to continue building on our respective low-risk, long-term, fee-for-service business models while growing and substantially diversifying our respective asset bases.”
The release notes that the combined asset base of energy infrastructure makes the transaction valuable, as Veresen is pursuing development in the B.C. Montney area, complementary to Pembina’s pipeline expansion in the area.
As well, the North American Alliance Pipeline connects the Western Canadian Sedimentary Basin to new markets, with Veresen having an interest in Ruby Pipeline, connecting the Opal Hub in southwest Wyoming to to another in southern Oregon.
Veresen is also the proponent behind Jordan Cove LNG, a liquefaction and terminal project at the Port of Coos Bay, Oregon.