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Alberta-based transportation company Veresen bought a 50 percent preferred interest in the Ruby pipeline system from Kinder Morgan for $1.42 billion Tuesday.

The acquisition will be made through a wholly-owned subsidiary of Veresen.

El Paso Pipeline Partners, an affiliate of Kinder Morgan, holds the remaining 50 percent ownership interest in Ruby through a common equity interest.

Houston-based Kinder Morgan will continue to operate Ruby.

Ruby is a large-scale natural gas transmission system delivering natural gas produced in the U.S. Rockies to markets in the western United States.

The 680 mile long, 42 inch pipeline has a current capacity of approximately 1.5 billion cubic feet per day and can be expanded to 2.0 bcfpd through the addition of compression.

Concurrent with this transaction, Veresen entered into an $800 million bought deal subscription receipt financing that will help fund the Ruby purchase.

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 that would supply Veresen’s Jordan Cove LNG terminal.

Veresen owns a 50 percent stake in the Jordan Cove LNG terminal.

The acquisition does not change Versen’s 2014 guidance.