OMERS Infrastructure Management has agreed to acquire a 50 percent interest in BridgeTex Pipeline Co LLC, owner of the BridgeTex pipeline, a 400,000 barrel-per-day crude oil pipeline system located in Texas.
OMERS will pay US$1.438 billion for the stake, which is being sold by Plains All American Pipeline and Magellan Midstream Partners. Plains and Magellan will retain 20 percent and 30 percent interests respectively, while Magellan will continue to operate the pipeline.
The deal is expected to close in the fourth quarter.
BridgeTex will be OMERS’ third investment in U.S. energy infrastructure in 2018. It follows earlier deals struck to acquire a 24 percent stake in the owner of Puget Sound Energy and the whole of Leeward Renewable Energy LLC.
OMERS Infrastructure Announces Investment in BridgeTex
NEW YORK and TORONTO, Aug. 21, 2018 (GLOBE NEWSWIRE) — OMERS Infrastructure Management, Inc., the infrastructure investment manager of OMERS, today announced a definitive agreement to acquire a 50 percent interest in BridgeTex Pipeline Company, LLC (“BridgeTex”) for $1.438 billion. BridgeTex is the owner of the BridgeTex pipeline, a key provider of crude oil transportation from Colorado City in West Texas to refineries in Houston and Texas City as well as for marine export through the Houston Ship Channel.
Upon completion of the transaction OMERS, the defined benefit pension plan for municipal employees in Ontario, Canada, will become the largest shareholder of BridgeTex, with affiliates of both Plains All American Pipeline, L.P. (“Plains All American”) and Magellan Midstream Partners, L.P. (“Magellan”) retaining 20% and 30% owned interests respectively and an affiliate of Magellan continuing to act as operator of the pipeline.
“OMERS investment in BridgeTex is consistent with our strategy of building significant, long-term investment partnerships with leading corporations, and marks our re-entry into the attractive U.S. midstream energy sector,” said Michael Ryder, Senior Managing Director, Americas, for OMERS Infrastructure. “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.”
“Around the world, OMERS Infrastructure is singularly focused on owning vital, large-scale infrastructure assets that will best position our portfolio to deliver strong, consistent returns to OMERS members for many years to come,” said Ralph Berg, OMERS Infrastructure’s Executive Vice President and Global Head. “BridgeTex is yet another example of this strategy and brings another high-performing energy asset into our growing North American infrastructure portfolio.”
BridgeTex will be OMERS third major investment in U.S. energy infrastructure in 2018. In March, OMERS Infrastructure executed agreements to acquire Leeward Renewable Energy, LLC, a leading U.S. wind power project owner, operator and developer. Earlier this month, OMERS also announced the planned acquisition of a 24% stake in Puget Holdings LLC, owner of Puget Sound Energy, Washington State’s oldest regulated energy utility providing electric and natural gas service to millions of customers in Western Washington.
Globally, the OMERS Infrastructure portfolio continues to expand with approximately $17 billion of assets under management in high quality investments in transportation, energy and critical social infrastructure worldwide at the end of 2017.
About OMERS and OMERS Infrastructure
OMERS Infrastructure invests globally in infrastructure assets on behalf of OMERS, the defined benefit pension plan for Ontario’s municipal employees. Investments are aimed at steady returns to help deliver strong and sustainable pensions to OMERS members. OMERS Infrastructure’s diversified portfolio of large-scale infrastructure assets exhibits stability and strong cash flows, in sectors including energy, transportation and government-regulated services.
OMERS has employees in Toronto and other major cities across North America, the U.K., Europe, Asia and Australia. OMERS is one of Canada’s largest defined benefit pension funds, with net assets of more than C$95 billion. Visit www.omersprivatemarkets.com for more information.
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