Enbridge to sell natural gas processing business to Brookfield group for $4.31B
The deal announced July 4 is expected to close in two phases, with the facilities subject to provincial regulation expected to close this year and those under federal rules anticipated to close in mid-2019
CALGARY—Enbridge Inc. has signed a deal to sell its Canadian natural gas gathering and processing business in the Montney, Peace River Arch, Horn River and Liard basins in B.C. and Alberta to Brookfield Infrastructure and its partners for $4.31 billion.
“This investment represents an exciting opportunity to invest in scale in one of North America’s leading gas gathering and processing businesses based in Western Canada,” Brookfield Infrastructure CEO Sam Pollock said in a statement Wednesday.
“The business is strategically positioned for the continued development of the prolific Montney Basin.”
The midstream assets includes 19 natural gas processing plants and liquids handling facilities, with a total operating capacity of 3.3 billion cubic feet per day and 3,550 kilometres of natural gas gathering pipelines.
Enbridge has been selling non-core assets in an effort to reduce debt.
Chief executive Al Monaco said with $7.5 billion in deals announced this year the company has more than doubled its initial target of $3 billion.
In May, Enbridge signed a $1.75-billion agreement with the Canada Pension Plan Investment Board to sell a 49 per cent stake in most of its wind and solar power assets and a $1.44-billion deal to sell Midcoast Operating LP to an affiliate of private equity firm ArcLight Capital Partners LLC.
Enbridge has said it will continue to hold its long-haul regulated natural gas transmission assets which include the Westcoast transmission system in British Columbia and the Alliance pipeline that carries natural gas from Western Canada to the Chicago market.
The deal announced Wednesday is expected to close in two phases, with the facilities subject to provincial regulation expected to close this year and those under federal rules anticipated to close in mid-2019.News from © Canadian Press Enterprises Inc. 2019