Kingston Midstream Alberta Ltd. has agreed to acquire Rangeland Midstream Canada Ltd., Calgary, from Rangeland Energy and EnCap Flatrock Midstream. Financial details of the all-cash transaction were not disclosed.
Midstream assets included in the deal consist of the Marten Hills pipeline system, comprised of crude oil and condensate pipelines, both 82-km (51 miles) in length, and related assets serving the Marten Hills region of north central Alberta in the Clearwater play. Rangeland Canada initiated construction in October 2019 and the system was placed into service in July 2020 (OGJ Online, July 7, 2020). The Marten Hills pipeline system terminates at an interconnect with Plains Midstream Canada’s Rainbow Pipeline System which ultimately serves the Edmonton, Alta. hub and refining market.
The transaction is expected to close by the end of third-quarter 2023, subject to customary regulatory approvals, at which time Rangeland Canada’s field employees and Athabasca office will remain with the business and become part of Kingston.