Canadian Manufacturing

Enbridge proposes transfer of Alberta Clipper stake to U.S. unit

Proposed transfer would see Enbridge transfer 66.7 per cent stake in U.S. portion of pipeline to Enbridge Energy Partners

CALGARY—Enbridge Inc. is proposing to transfer to its American subsidiary US$900 million in assets, including the Calgary-based company’s majority stake in a portion of a pipeline that runs through the United States.

In a press release issued this week, Enbridge said it has proposed to transfer its 66.7 per cent interest in the U.S. segment of its Alberta Clipper pipeline to Enbridge Energy Partners LP, its U.S.-based affiliate.

Enbridge Energy Partners owns the remaining 33.3 per cent stake in the 1,600-kilometre pipeline that moves crude oil from from Hardisty, Alta., across northeastern North Dakota and northern Minnesota to Superior, Wis.

The deal would see Enbridge transfer its interest to Houston-based Enbridge Energy Partners in return for US$300 million in cash and US$600 million in equity units.

Enbridge’s interest in its U.S. unit would increase from approximately 34 per cent to approximately 36 per cent as a result of the transfer.

The proposed transfer and terms are subject to review.

The Alberta Clipper line is undergoing an expansion project that will see its capacity boosted to 800,000 barrels per day of crude.

Minnesota regulators approved the expansion in June.

The transfer is targeted to close by the end of 2014.

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