Enbridge acquires Horn River gas development for $250 million
Development expected to produce 800 million cubic feet of natural gas a day
Oil & Gas
mergers and acquisitions
CALGARY—Enbridge Inc. has reached an agreement with Encana Corp. to become the majority owner of the Cabin Gas Plant Development in a deal worth $250 million.
The development is about 60 kilometers northeast of Fort Nelson, BC in the Horn River Basin.
Enbridge will acquire a 57.6 per cent interest in Phases 1 and 2 of the Cabin Gas Plant Development, which together will process 800 million cubic feet per day of natural gas.
Upon completion of Phases 1 and 2, Enbridge’s total investment is expected to be approximately $900 million.
Phase 1 will have 400 million cubic feet per day of natural gas processing capacity once construction is complete in mid-2012. Phase 2 will add another 400 million cubic feet per day once it is completed in 2014.
With gas in place estimated at 400 to 550 trillion cubic feet, the Horn River natural gas play is one of the most prolific in North America. The entire development has the potential to include six phases with a capacity of 2.4 billion cubic feet per day.
Calgary-based Enbridge Inc. is Canada’s largest natural gas distribution company, employing more than 6,400 people in the U.S. and Canada.