Kingston Midstream Ltd.’s wholly-owned subsidiary, Kingston Midstream Alberta Ltd., is acquiring Rangeland Midstream Canada Ltd., owner of Alberta’s Marten Hills pipeline, from Rangeland Energy in an all-cash transaction.
The transaction is expected to close by the end of the third quarter, subject to regulatory approvals, the two companies said in separate press releases on Tuesday. The value of the transaction was not disclosed.
The Marten Hills pipeline is located in the Clearwater conventional heavy oil field in northern Alberta and includes a 12-inch-diameter, 51-mile (82-kilometer) long crude oil pipeline with a production capacity of 60,000 barrels per day (bpd). as well as a condensate pipe four inches in diameter and 82 kilometers long. The pipeline began operations in 2020 and its current throughput is approximately 45,000 bpd. The pipeline serves oil producers in the Marten Hills area of Clearwater and transports their oil production to several markets, Kingston said.
After the transaction closes, Kingston said its facilities in the Marten Hills area, along with its assets in southeast Saskatchewan and southwest Manitoba, will be able to transport more than 220,000 bpd to market .
“The acquisition furthers Kingston’s energy infrastructure platform and diversifies both its customer base and basin exposure, while adding critical, long-term high-quality crude infrastructure assets in one of the most prolific plays in North America. We are excited about the opportunities this will create as we find new ways to continue to help basin participants bring their products to market safely and efficiently. We look forward to welcoming staff field to the Kingston family,” said Jim Hand, Kingston President and CEO.
“We believe the addition of this modern, well-built pipeline will be highly complementary to Kingston’s existing portfolio of midstream infrastructure in Western Canada,” said Hartley Richardson, executive chairman, president and CEO of James Richardson & Sons Ltd, the parent company. of Kingston.
“From the beginning, our goal was to demonstrate to the producer community that the midstream model in Canada can be done differently. We brought our pipeline into service during the most extraordinarily uncertain oil price environment the market has ever seen. ever experienced, and our team worked closely with our customers during that difficult period,” said Rangeland Midstream Canada President Briton Speer.
“The entire Rangeland team has done an excellent job exporting our proven American brand to Canada to develop a first-class midstream system in the prolific Clearwater/Marten Hills oil play. We are committed to continuing our activities brand development and midstream in Canada with our second company, Rangeland Midstream Canada II,” said Chris Keene, CEO of Rangeland Energy.
“This is our third successful completion with Rangeland and our first in Canada. Chris Keene and his team have combined their vision with top-notch execution, successfully completing our first investment in Canada and achieving an attractive valuation Morriss Hurt, managing partner and COO of EnCap Flatrock Midstream, Rangeland Energy’s financial sponsor, said in Rangeland’s press release.
Kingston, with operations in Alberta, Saskatchewan and Manitoba, provides energy transportation and related services to the oil and gas industry in Western Canada with more than 1,367 miles (2,200 kilometers) of oil and liquids pipelines, five crude oil terminals and more than 600,000 barrels. storage and crude oil loading capacity, according to the company.
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