Canadian Natural Resources (TSX:CNQ) is selling its 15 per cent stake in the Cold Lake pipeline system to Inter Pipeline Ltd. for about $527.5 million in cash and shares.
Once the transaction closes, Inter Pipeline (TSX:IPL) will have 100 per cent ownership of the Cold Lake system which serves a variety of large oilsands producers including Canadian Natural and Imperial Oil (TSX:IMO).
Inter Pipeline will pay $350 million in cash and $177.5 million worth of its common shares to CNRL, subject to closing conditions.
That deal is expected to close before the end of the year.
In addition, Inter Pipeline expects to build a new $125-million pipeline connection to CNRL’s Kirby North oilsands production facility, southwest of Conklin, Alta.
The Kirby North pipeline extension is targeted to be in service in the first quarter of 2020.