Pembina Acquires Bakken Midstream Assets - $650 Million

Saskatchewan Ethane Processing Plant
Saskatchewan Ethane Processing Plant

Pembina Pipeline Corp. announced in early Sept. 2014 it will acquire Bakken midstream assets for $650-million from entities affiliated with Riverstone Holdings, LLC.

The deal includes the Vantage pipeline system, which carries up to 40,000 b/d of natural gas liquids from the North Dakota Bakken to Alberta, where it is connected to the Alberta Ethane Gathering System pipeline. Also included the deal are Mistral Midstream Inc's interest in a Saskatchewan ethane processing plant. The plant is expected to produce 4,500 b/d of ethane, and it will connect into Vantage system through a pipeline lateral that is also currently under construction. The deal is expected to close in the fourth quarter of 2014.

Pembina anticipates additional capital expenditures of approximately $91.5-million (net to Pembina) prior to the end of 2015 in connection with the Transaction in order to complete the construction of the ethane processing plant and the associated gathering and delivery system.

In addition to the Bakken acquisition, the company also announced plans to build a 37,500 b/d propane export terminal in Portland, Oregon, for $500-million. The facility is expected to be in service by 2018.