Pacific Energy Partners buying Canadian pipelines

Pacific Energy Partners LP, Long Beach, Calif., has agreed to acquire two Canadian pipelines in two separate deals. The pipelines are the Rangeland Pipeline System and Mid Alberta Pipeline (MAPL), both in the Alberta area.

Feb. 27, 2004

By OGJ editors
HOUSTON, Feb. 27 -- Pacific Energy Partners LP, Long Beach, Calif., has agreed to acquire two Canadian pipelines in two separate deals. The pipelines are the Rangeland Pipeline System and Mid Alberta Pipeline (MAPL), both in the Alberta area.

Pacific Energy is buying Rangeland from BP Canada Energy Co. The Rangeland system includes Rangeland Pipeline Co., Rangeland Marketing Co., and Aurora Pipeline Co. Ltd.

Pacific Energy agreed to pay $130 million (Can.) for the Rangeland system, plus $26 million for line fill, working capital, transaction costs, and transition capital expenditures. Closing is expected within 90 days, subject to regulators' approval.

Concurrently, Pacific Energy announced a wholly owned subsidiary agreed to buy MAPL from Imperial Oil Resources, subject to regulators' approval and other standard closing conditions

MAPL is a 138 mile, 12-in. and 16-in. crude oil pipeline with a capacity of 50,000 b/d. The Rangeland system includes 800 miles of gathering and trunk pipelines for gathering and moving crude oil, condensate, and butane.