... Veresen Inc. to Acquire Interest in Ruby Pipeline

Veresen Inc. to Acquire Interest in Ruby Pipeline for $1.425 Billion

BusinessBriefsIn a Sept. 22 news release, Veresen Inc. announced that it entered into an agreement to acquire Global Infrastructure Partners’ 50 percent convertible preferred interest in the Ruby pipeline system.

Veresen, of Calgary, Alberta, owns and operates ‎energy infrastructure assets across North America and the $1.425 billion acquisition will be made through a wholly-owned subsidiary of Veresen.‎

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The newly-built Ruby pipeline system is a large-scale natural gas transmission system delivering U.S. Rockies natural ‎gas production to markets in the western United States. The 680-mile, 42-inch pipeline has a ‎current capacity of approximately 1.5 billion cubic feet per day, with expansion potential ‎through the addition of compression.

Ruby pipeline originates at the Opal hub in Wyoming ‎and extends to the Malin hub in Oregon. The Malin hub is the main interconnect to the proposed ‎Pacific Connector Gas Pipeline (50 percent owned by Veresen), which would supply Veresen’s ‎proposed Jordan Cove LNG terminal.‎

El Paso Pipeline Partners, an affiliate of Kinder Morgan Inc., holds the ‎remaining 50 percent ownership interest in the Ruby pipeline through a common equity interest. An affiliate of Kinder Morgan will continue to ‎operate the Ruby pipeline on a day‐to‐day basis.‎

The acquisition, which is subject to customary closing conditions and the receipt of approval by the Committee on Foreign Investment in the United States, is expected to close in the fourth quarter.

Baker Botts represented Veresen Inc. in this transaction and also represents Veresen on the Jordan Cove LNG terminal. In-House Counsel to Versen was Patrick Trumpy and outside counsel to Global Infrastructure Partners was Latham & Watkins LLP.

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