CALGARY, A.B. – Kinder Morgan Inc. has announced that Pembina Pipeline Corporation has acquired the U.S. portion of the Cochin Pipeline for $1.5 billion.
In addition, Kinder Morgan says Pembina has acquired all of the outstanding common equity of Kinder Morgan Canada Limited, including the 70 percent majority voting interest held by Kinder Morgan Inc.
As mentioned in the 2020 budget guidance, KMI intends to use the proceeds from the Pembina transactions to pay down debt, creating approximately $1.2 billion of balance sheet/borrowing flexibility in 2020, which it says will provide attractive optionality.
Designed to move crude oil from Alberta to the Pacific Coast, the Trans Mountain Pipeline system received approval from the Canadian Government in November 2016 to undergo a major expansion but faced stiff opposition from various municipalities in B.C., Indigenous groups and environmentalists.
Kinder Morgan suspended work on the expansion project and then sold it to the Canadian government, which viewed it as vital to expanding Canadian oil exports.