Kingston Midstream to Acquire Rangeland Midstream and Its Clearwater Assets, Canada
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Kingston Midstream Limited has entered into an agreement where its wholly-owned subsidiary, Kingston Midstream Alberta will acquire Rangeland Midstream Canada Limited, the owner of the Marten Hills Pipeline. Closing of the transaction is expected to occur by the end of the third quarter of 2023, subject to certain regulatory approvals.
The Marten Hills Pipeline is located in the Clearwater conventional heavy oil play in northern Alberta and includes a 12-inch diameter 82-kilometer long crude oil pipeline having a throughput capacity of 60,000 barrels per day (bpd), as well as a 4-inch diameter 82-kilometer long condensate pipeline. The pipeline commenced operation in 2020 and its current throughput is approximately 45,000 bpd. The pipeline services oil producers in the Marten Hills area of the Clearwater and transports their oil production to a number of end markets.
Following the closing of this transaction, Kingston’s facilities in the Marten Hills area, together with its assets in southeast Saskatchewan and southwest Manitoba, will help transport more than 220,000 bpd to market.
“The acquisition furthers Kingston’s energy infrastructure platform and diversifies both its customer base and basin exposure, while adding critical, high quality long term crude infrastructure assets in one of the most prolific plays in North America. We’re excited about the opportunities this will create as we find new ways to continue assisting basin participants to safely and efficiently bring their products to market,” said Kingston CEO, Jim Hand.
“We look forward to welcoming the field staff into the Kingston family,” added Hand.
“From the outset, our goal was to demonstrate to the producer community that the midstream model in Canada can be done differently,” said Rangeland Midstream Canada President, Briton Speer.
“We brought our pipeline into service during the most extraordinarily uncertain oil price environment the market had ever experienced, and our team worked closely with our customers through that challenging period. We would like to thank our field team in Athabasca who have operated these assets with the utmost professionalism and have a flawless safety record to show for it,” added Speer.
“The entire Rangeland team has done an outstanding job exporting our proven U.S. brand to Canada to develop a first-class midstream system in the prolific Clearwater/Marten Hills oil play. We are committed to continuing our brand and midstream development activities in Canada with our second company, Rangeland Midstream Canada II,” said Rangeland Energy CEO, Chris Keene.
Closing of the transaction is expected to occur by the end of the third quarter of 2023, subject to certain regulatory approvals.
Kingston Midstream is a wholly-owned subsidiary of James Richardson & Sons, Limited. Kingston Midstream, with operations in Alberta, Saskatchewan and Manitoba, provides safe and reliable energy transportation and related services to the oil & gas industry in western Canada with more than 2,200 km of crude oil and liquids pipelines, five crude oil terminals, and over 600,000 barrels of crude oil storage and loading capacity.
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