Veresen to acquire interest in Ruby pipeline
Published by Elizabeth Corner,
Senior Editor
World Pipelines,
Veresen Inc., a Canadian pipeline company developing the Jordan Cove LNG facility in Oregon, said yesterday that it has agreed to acquire Global Infrastructure Partners' half interest in the Ruby pipeline system for CAN$ 1.43 billion.
Calgary-based Veresen will become Kinder Morgan Inc's equal partner in the Ruby line, which carries as much as 1.5 billion ft3/d of natural gas 680 miles (1100 km) from the Opal, Wyoming hub to the Malin hub in southern Oregon. From there the gas will travel by a new pipeline to Jordan Cove.
Veresen is acquiring Global Infrastructure's convertible preferred shares, which can be converted into common shares at its option. Kinder Morgan will remain as operator of the pipeline.
To pay for the project, Veresen will sell 48.8 million of subscription receipts priced at CAN$ 16.40 each to a group of underwriters led by Scotiabank that will raise about CAN$ 800 million (US$ 730 million). Each receipt can be converted into a Veresen share once the deal closes in Q4. The remainder of cost will be funded by debt.
Veresen shares were halted on the Toronto Stock Exchange in advance of the news and ended the day at CAN$ 17.17, down 26 Canadian cents.
Veresen says the pipeline will bolster plans to ship natural gas from the proposed terminal in Oregon.
Edited from various sources by Elizabeth Corner
Sources: Reuters, Financial Post
Read the article online at: https://www.worldpipelines.com/business-news/23092014/veresen-to-acquire-interest-in-ruby-pipeline/
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