BNN Bloomberg's commodities update: Aug. 21, 2018
TORONTO -- The Ontario Municipal Employees Retirement System has an agreement to pay $1.87 billion for a 50 per cent stake in BridgeTex Pipeline Company, LLC, which owns a pipeline system that carries crude oil from West Texas to Houston.
The two companies that currently own BridgeTex will remain minority shareholders, with Plains All American retaining a 20 per cent interest and Magellan Midstream retaining a 30 per cent interest.
OMERS is one of Canada's largest defined benefit pension funds, with net assets of more than $95 billion.
The BridgeTex pipeline currently has capacity to carry 400,000 barrels per day from Colorado City, where it collects crude oil from two pipeline systems owned by Plains, and delivers it to Magellan facilities in Houston.
The companies say capacity on the BridgeTex pipeline will be increased by 10 per cent to 440,000 barrels per day by early 2019.
Michael Ryder, a senior managing director for OMERS Infrastructure, said the BridgeTex investment is consistent with a strategy of building significant, long-term investment partnerships.
"We're very excited to join Plains All American and Magellan as co-owners and look forward to working together to support future operations of the BridgeTex pipeline," Ryder said.