Federal Government Purchases Trans Mountain Expansion Project for C$4.5B

CANADA - The Government of Canada has signed a Purchase and Sale Agreement to purchase the 1,000-kilometre Trans Mountain Pipeline system and the related expansion project, and the Puget Sound Pipeline system for C$4.5 billion from Kinder Morgan. Until July 2018 the Government will seek a third party to whom Canada may assign the PSA. If an assignment does not occur, Canada will complete the transaction once the closing conditions have been satisfied or waived by both parties.

The purchase includes the existing Trans Mountain Pipeline, including pumping stations and rights of way along the route between Edmonton and Vancouver, as well as the marine terminal in Burnaby, B.C., where oil is loaded onto tankers for export. It also includes the Puget Sound Pipeline that connects to the Trans Mountain Pipeline in British Columbia and crosses the Canada-US border, ending on the coast of Washington State.

Date Announced: 05/29/2018 
Deal Status (as of publication date): Pending
Deal Value (mil): $
4,500

ACQUIRER ADVISORS*
Greenhill & Co. (Financial Advisor)
Borden Ladner Gervais LLP (Legal Advisor, Canada)
Sidley Austin LLP (Legal Advisor, US)

TARGET ADVISORS*
TD Securities Inc. (Financial Advisor)
Blake, Cassels & Graydon LLP (Legal Advisor, Canada)
Weil, Gotshal & Manges LLP (Legal Advisor, US)

The Trans Mountain Pipeline, originally built in 1953, is a pipeline that carries crude and refined oil from Alberta to the west coast of British Columbia.  The expansion would be a twinning of the existing 1,150-kilometre pipeline and would add 980 kilometers of new pipeline and increase capacity from 300,000 barrels a day to 890,000 barrels a day.

*List of advisors are those known at press time.