Inter Pipeline Ltd. successfully closed its acquisition of the remaining 15% interest in the Cold Lake pipeline system from Canadian Natural Resources Ltd. for CA$527.5 million, subject to closing adjustments.

The acquisition, announced on Dec. 12, gave Inter Pipeline full ownership of the 1,400-kilometer Cold Lake pipeline system, which is the largest transporter of Cold Lake-area bitumen production.

Canadian Natural received CA$350 million in cash and CA$177.5 million through the issuance of about 6.41 million Inter Pipeline common shares in consideration for its Cold Lake ownership interest.

Funding for the cash component of the acquisition was provided from proceeds of a new 10-year medium-term note offering that closed Dec. 19, the company said.

Concurrent with closing of this acquisition, Inter Pipeline entered into a binding long-term take-or-pay agreement with Canadian Natural to transport diluent and bitumen blend for its Kirby North steam-assisted gravity drainage oil sands project.

Under this agreement, a new CA$125 million pipeline connection to the Kirby North production facility will be built. It is expected to begin service in first-quarter 2020.

Inter Pipeline Ltd. is based in Calgary, Alberta.