Ruby is a newly-built, large-scale natural gas transmission system delivering U.S. Rockies natural gas production to markets in the western United States. The 680-mile, 42-inch pipeline has a current capacity of approximately 1.5 billion cubic feet per day (bcf/d), with expansion potential to 2.0 bcf/d through the addition of compression.
Ruby originates at the Opal hub in Wyoming and extends to the Malin hub in Oregon . The Malin hub is the main interconnect to the proposed Pacific Connector Gas Pipeline (50% owned by Veresen), which would supply Veresen’s proposed Jordan Cove LNG terminal.
El Paso Pipeline Partners, an affiliate of Kinder Morgan Inc., holds the remaining 50% ownership interest in Ruby through a common equity interest. Kinder Morgan, North America’s largest natural gas pipeline operator, will continue to operate Ruby on a day?to?day basis.
Don Althoff , President and CEO of Veresen, stated:
This transaction is consistent with Veresen’s growth strategy, where we are focused on leveraging our existing footprint, adding assets with further growth potential, and providing natural gas connectivity from competitive supply regions to high-value markets.
Funding for the Ruby acquisition is expected to be provided from a combination of equity and debt, specifically: the proceeds from an approximate US$800 million equity offering pursuant to which subscription receipts will be issued, US$750 million from new credit facilities, and the balance from Veresen’s existing revolving credit facility.