Fortis to buy majority stake in B.C. gas storage facility for US$266M
Company says Aitken Creek is "uniquely positioned" to take advantage of LNG export potential
ST. JOHN’S—Fortis Inc. is adding to its infrastructure assets on Canada’s west coast.
The company has entered into an agreement to buy a 93.8 per cent stake in B.C.’s Aitken Creek Gas Storage Facility from Chevron Canada for US$266 million.
“Fortis is focused on growing its natural gas investments in B.C.,” the utility’s president and CEO, Barry Perry, said. “This acquisition is the right fit for us both operationally and strategically: we currently lease approximately one-third of the available storage capacity and this asset positions us well to further expand our gas infrastructure in the province.”
With a capacity of 77 billion cubic feet, Aitken Creek is the largest gas storage facility in B.C. The fully-underground facility is an “integral” part of Western Canada’s natural gas network, Fortis said. The company also noted the facility is “uniquely positioned” to benefit from the completion of proposed west-coast LNG export projects.
“Fortis has a clear path towards exceeding $20 billion in rate base by 2020. Beyond this rate base growth, we are pursuing additional investment opportunities in existing and new franchise areas that will continue to diversify our asset base and grow our business. The acquisition of Aitken Creek is a good example of this strategy in action,” Perry, added.
The deal is subject to customary conditions and expected to close in the first half of 2016.