Buckeye Partners, backed by IFM Investors, has agreed to acquire Bear Head Energy, owner of a clean energy development project in an industrial complex in Point Tupper, Nova Scotia. No financial terms were disclosed. Houston-based Buckeye, which owns and operates a network of assets providing midstream logistic solutions, was acquired by IFM in 2019 for $10.3 billion.
HOUSTON and PORT HAWKESBURY, Nova Scotia, May 05, 2022 (GLOBE NEWSWIRE) — Buckeye Partners, L.P. (“Buckeye”) today announced it has entered into a definitive agreement to acquire Bear Head Energy, Inc., which owns a clean energy development project located in an industrial complex in Point Tupper, Nova Scotia, Canada (the “Bear Head Project” or the “Project”).
The Bear Head Project, previously developed as a liquified natural gas (LNG) import and export facility, is fully permitted, and the Project is unique in Eastern Canada with all of the project approvals and permits in place necessary for construction, placing it at a significant advantage for expeditious project development and execution.
Located on 251 acres of land and a 68-acre water lot on the northeast bank of the Strait of Canso, the Project enjoys access to one of the northern-most, year-round ice-free ports with advantaged proximity to critical demand markets in Atlantic Canada, the U.S. East Coast and Europe.
“Nova Scotia’s unique geographical characteristics give the region the potential to become one of the most productive renewable and green energy development areas in the world, and via this acquisition, it is our intention to develop a large-scale energy production, distribution and export hub that will offer our customers lower-carbon energy solutions, including LNG or other green fuels,” said Buckeye CEO Todd J. Russo. “We are excited to support the Bear Head management team, who has a rich history with the Project and strong association with Nova Scotia and key stakeholders in the region.”
Buckeye continues to pursue a targeted investment and diversification strategy throughout its business, focusing on opportunities in low-carbon energy sources such as solar, wind, hydrogen, biofuels and LNG. “This acquisition demonstrates Buckeye’s focus on being an integral part of the next phase of the global energy evolution,” said Russo.
“Buckeye is completely aligned with our values, and we are excited to continue expanding on our relationships with Mi’kmaq communities, governing authorities, and local stakeholders in pursuit of building a world-class energy export facility in Nova Scotia,” said Bear Head COO Paul MacLean.
“We are excited to have Buckeye as our shareholder in the development of Bear Head,” said Bear Head President and CEO John Godbold. “With the full support of Buckeye, we are able to leverage their best-in-class project management, construction and financial capabilities, which are integral to our ability to develop the Project with a clear line of sight from development all the way through operations.”
“Canada has the natural resources, skilled workforce and access to global markets that can provide abundant clean energy to North America and the rest of the world,” said Katie Curran, Interim CEO, Invest in Canada, Canada’s national investment promotion agency. “Invest in Canada has worked collaboratively with governments and industry stakeholders on the Bear Head Project to bring sustainable benefits to individuals and communities in the region.”
The Bear Head Project is anticipated to spur economic growth in the Strait region, providing a variety of economic and social benefits for the community, while strengthening the region’s involvement in the energy transition.
About Buckeye Partners
Buckeye Partners, L.P., a wholly owned investment of the IFM Global Infrastructure Fund (“IFM GIF”), owns and operates a diversified global network of integrated assets providing liquid petroleum product logistics solutions. Across every aspect of the business – including its approximately 5,500 miles of domestic pipeline, more than 115 liquid petroleum products terminals and over 125 million barrels of tank capacity – Buckeye focuses on responsibly providing world-class service to meet the changing energy needs of its customers. As part of this business priority and commitment to its customers, Buckeye is increasingly diversifying its platform to advance energy transition initiatives and decarbonization efforts. For more information about Buckeye and its ESG efforts, visit www.buckeye.com.