Inter Pipeline Ltd. closed its acquisition of the remaining 15% stake in the Cold Lake pipeline system from Canadian Natural Resources Ltd., a C$527.5 million deal that makes Inter Pipeline the sole owner of the system.

The closing also makes effective a binding long-term take-or-pay agreement with Canadian Natural Resources for diluent and bitumen blend transportation to its Kirby North SAGD oil sands project, expected to result in the construction of a C$125 million pipeline to the Kirby North facility. The Cold Lake pipeline system is the largest transporter of bitumen production in the area, Inter Pipeline said in a Dec. 16 news release.

The purchase price is composed of C$350 million of cash and C$177.5 million worth of Inter Pipeline common stock amounting to 6,417,740 shares. Inter Pipeline funded the cash portion using proceeds from a medium term note offering that closed on the same day.