Pipeline operator Kinder Morgan announced last week it’s sold all of its 25 million shares of Canada’s Pembina Pipeline Corp. for $764 million after taxes, Kallanish Energy reports.
The money will be used in its 2020 budget to reduce debt, said the Houston-based company. Kinder Morgan acquired the shares when Pembina bought Kinder Morgan Canada last August as part of a C$4.35 billion ($3.33 billion) deal.
Pembina, with headquarters in Calgary, Alberta, also acquired the U.S. portion of the Cochin Pipeline in the Kinder Morgan deal for C$2.05 billion ($1.57 billion) in cash. Kinder Morgan had owned 70% of Kinder Morgan Canada.
The pipeline moves 110,000 barrels per day of condensate from Fort Saskatchewan, Alberta, to Chicago, Illinois, a distance of about 1,740 miles (2,900 kilometers).
The deal also includes an Edmonton, Alberta, storage and terminal operation and Vancouver Wharves, a bulk storage and import-export business in British Columbia.
Kinder Morgan Canada had been spun off from its American parent company in 2017 to raise money for the Trans Mountain oil pipeline expansion, but in 2018, Kinder Morgan sold the pipeline and its expansion project to the Canadian federal government for C$4.5 billion ($3.45 billion).
Work on the C$9.3 billion ($7.13 billion) expansion from Alberta to British Columbia is beginning, and could be in service by mid-2022.
Kinder Morgan Canada had initially announced last May that it intended to remain a stand-alone public company.
