Husky Energy said it has closed a transaction to create a new partnership which will assume ownership of select midstream assets in the Alberta and Saskatchewan region.
The company said it received $1.7billion from the transaction after it received regulatory approval earlier this month.
The partnership is expected to facilitate the expansion of Husky’s heavy oil thermal business as financing has been secured for investment in new infrastructure to expand takeaway capacity for at least eight new Lloyd thermal projects.
Husky said it will remain operator of the assets, which include 1,900 kilometres of pipeline, 4.1million barrels of oil storage capacity and other assets.
The firm, Husky Midstream Limited Partnership, will be based in Calgary, Alberta.