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Calgary-based Inter Pipeline Fund has announced that it has entered into an agreement to acquire four petroleum storage terminals in Denmark from a subsidiary of Dong Energy A/S - one of the largest energy groups in Northern Europe.

The transaction will involve a cash consideration of EUR354 million (approximately US$505 million), and is expected to close in October 2011.

The four storage terminals to be acquired by Inter Pipeline Fund are located at Asnaes, Ensted, Stigsnaes and Gulfhavn. Collectively, these terminals form a business unit known as Dong Energy Oil Terminals.

Commenting on the deal, Inter Pipeline Fund said: "Certain closing conditions and customary purchase price adjustments apply to the transaction". Inter Pipeline added that it will fund the final purchase price with available sources of credit.

"This acquisition more than doubles our storage capacity in Western Europe, while complementing Inter Pipeline's existing storage operations in the United Kingdom, Ireland and Germany," commented David Fesyk, President and Chief Executive Officer of Inter Pipeline Fund.

"From an investor perspective, this is an immediately accretive transaction that adds new long-life energy infrastructure assets with stable cash flow characteristics to our portfolio," added Fesyk.

The acquisition will increase Inter Pipeline's total storage capacity in Western Europe to approximately 19 million barrels. It will establish Inter Pipeline as the 4th largest independent storage business in Europe.