Inter Pipeline has confirmed media reports of receiving a takeover proposal from an undisclosed party, but is yet to have entered into negotiations.
The Canadian pipeline transport company said that the disclosure is in response to a request made by the Investment Industry Regulatory Organization of Canada to comment on media reports.
A statement read: “While it is the company’s policy not to comment on market speculation or rumours, Inter Pipeline confirms that it received an unsolicited, non-binding, conditional and indicative proposal to purchase the company but it is not in negotiations with any third party, nor is there any agreement, understanding or arrangement with respect to any such transaction.
“Inter Pipeline does not intend to make any further public announcements regarding any rumours or speculation unless it determines that disclosure is warranted and in accordance with the requirements of applicable law.”
Based in Alberta, the midstream company owns and operates energy infrastructure assets located in western Canada and Europe. It is focused on energy processing, energy transportation, and energy storage.
Assets of Inter Pipeline
Inter Pipeline’s pipeline systems are spread over 7,800km in length and transport more than 1.4 million barrels per day (b/d).
The company’s operations include 23 petroleum and petrochemical storage terminals in Sweden, Denmark, UK, the Netherlands and Germany. The combined storage capacity of the assets is said to be nearly 37 million barrels.
Inter Pipeline’s natural gas liquids (NGL) business in Canada is said to have processed an average of 3.3bcf/d in 2018, with a capacity to produce more than 240,000b/d of NGL.
Last week, the Canadian midstream company said that it is exploring the sale of its European bulk liquid storage business in order to cut down its debt. The company also intends to use the proceeds from the potential sale of the business to fund its capital expenditure program, which includes the Heartland Petrochemical Complex, which is being built in Alberta with an investment of around C$3.5bn (£2.2bn).
Recently, the Canadian midstream company secured commercial support for the construction of the Viking Connector project, a C$100m (£62.75m) pipeline connection between its Bow River and Central Alberta pipeline systems, slated to be completed in the first half of 2020.
