All-cash deal will shuffle Canadian natural gas assets between two U.S. firms
HOUSTON—A major Western Canada natural gas facility and a range of related assets across Alberta, Saskatchewan and Manitoba are changing hands in a $200 million deal.
Spectra Energy Corp., through its subsidiary Westcoast Energy Inc., has agreed to sell the Empress natural gas liquids (NGL) extraction and fractionation facility to Plains Midstream Canada ULC, a subsidiary of Plains All American Pipeline. The deal also includes the PTC transmission pipeline, seven NGL terminals and two NGL storage facilities in Western Canada.
“These assets are a strategic fit with our existing core Canadian NGL midstream operations, allowing PMC to enhance its operating efficiencies and commercial synergies while providing optionality for producers in Western Canada and NGL customers throughout Canada and the northern U.S.” David Duckett, CEO of PMC, said. “The assets fit well into our existing NGL platform of assets and allow for continued long-term profitability.”
Spectra, which is based in Houston, Texas, said the divestment corresponds with its strategy to focus on stable, fee-based natural gas infrastructure in Western Canada.
“The Empress NGL business has served us well over the past decade and monetizing it at this time benefits our investors and allows Empress to continue delivering on its successful track record,” Greg Ebel, president and CEO of Spectra Energy, said.
The deal is subject to customary closing conditions and expected to close in the first half of the year.