Calgary-based Wolf Midstream will acquire a 50% ownership interest in Access Pipeline from Devon Energy for $1.4 billion. The Access system includes pipelines transporting blended bitumen and diluent between the Christina Lake area of northeastern Alberta and Edmonton. Under the terms of the contract, Devon’s thermal-oil acreage is dedicated to Access for an initial term of 25 years. Closing is expected during the third quarter.
In September 2015, Wolf’s management team and Canada Pension Plan Investment Board (CPPIB) created a midstream investment vehicle focused on acquisition opportunities in Western Canada. The transaction will be funded at closing by Wolf through an investment by CPPIB of $825 million and third-party debt financing.