A significant deal was reached on Thursday afternoon involving a notable energy company with plenty of resources in southeast Saskatchewan.

Enbridge Inc. announced an agreement for the sale of liquids pipelines assets in the South Prairie Region to Tundra Energy Marketing Limited for $1.075 billion (CAD) in cash. The sale was entered into by an affiliate of Enbridge Income Fund Holdings Inc.

Closing of the transaction is expected to occur around the end of the fourth quarter of 2016 and is subject to customary closing conditions, including the Canada Transportation Act and Canadian Competition Act approvals.

The assets include the Saskatchewan Gathering, Westspur, and Weyburn pipeline systems. The assets do not include the Bakken Expansion Pipeline, which enables delivery of crude oil production in North Dakota to the Mainline System at Cromer, Manitoba.

As part of the agreement, shipper commercial arrangements and contracts are expected to remain in place and crude oil and NGL volumes will continue to flow onto the Enbridge Mainline at Cromer.

“The monetization of these non-core assets at an attractive valuation provides a low-cost funding source for the Enbridge group and further supports Enbridge Inc.’s industry leading cash flow and dividend growth outlook from our secured organic growth platform,” said Enbridge Executive Vice President and Chief Financial Officer John Whelen.

“The transaction is accretive to the Fund Group’s available cash flow from operations on a per unit basis,” added Mr. Whelen.

"To ensure the continued safe and reliable operation of these Assets, our South Prairie Region team will be transitioning to TEML following close of the transaction,” said Guy Jarvis, Enbridge Executive Vice President, Liquids Pipelines and Major Projects.

“We thank the team for their important contribution to the safe operation of these Assets and will continue to work closely with TEML to facilitate a smooth transition of those team members.”