RE:RE:Enbridge says Line 3 replacement complete, opens FridayAtH Management never discloses anything, but their sale to Enbridge migh supply them with additional access to line 3 at discounted rates which could be massive.
Athabasca has entered into an agreement with Enbridge Inc. (“Enbridge”) for the sale of its Leismer pipelines and Cheecham storage terminal (“Leismer Infrastructure Transaction”). Enbridge has been a key partner with Athabasca across its Thermal Oil business unit and the Company looks forward to continuing this long term strategic relationship. The transaction unlocks tremendous value for shareholders while preserving strategic flexibility for the long term development of Athabasca’s high quality Leismer and Corner assets, each of which have regulatory approval for 40,000 bbl/d and a reserve life in excess of 80 years. Key elements of the transaction include:
- $265 million cash consideration with an annual toll of ~$26 million
- Priority service on pipelines and dilbit/diluent tanks; excess volumes receive a discounted toll
- Enhanced credit terms with Enbridge across the Thermal Oil business