Canadian pipeline firm Veresen said it will acquire 50 percent stake in the Ruby pipeline system. The $1.43 billion pipeline system spanning between Wyoming and Oregon is owned by Kinder Morgan affiliate El Paso Pipeline Partners.
Veresen's Jordan Cove liquefied natural gas (LNG) plant is also in Oregon and Veresen CEO Don Althoff said the pipeline is a great fit for the company as it could support the LNG project.
The Ruby pipeline has a capacity to transport 1.5 billion cubic feet per day of natural gas across 680 miles. After traveling from Opal, Wyoming, the natural gas will then be transferred to Jordan Cove.
Last month, in its second quarter earnings report, Veresen said it generated $63.7 million of distributable cash. The company also noted an important achievement with the Jordan Cove LNG facility, calling the receipt of the Notice of Schedule for the environmental review from the Federal Energy Regulatory Commission "a significant regulatory milestone."
"We continue to make good progress in advancing our key strategic initiatives, including the re-contracting of the Alliance Pipeline and development of Jordan Cove LNG," Althoff said in a statement.