Enbridge has plans to sell its Canadian natural gas gathering and processing business in the Montney, Peace River Arch, Horn River and Liard basins in British Columbia and Alberta to Brookfield Infrastructure and its partners for C$4.31 billion ($3.7 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,” said Sam Pollock, Brookfield Infrastructure CEO, in a statement
The midstream assets include 19 natural gas processing plants and liquids handling facilities, with a total operating capacity of 3.3 billion cubic feet per day and 2,206 miles of natural gas gathering pipelines.
The sale 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.
The sale is part of Enbridge’s efforts of reducing debt by selling its noncore assets and to focus on long-distance pipelines. In May, Enbridge made a C$1.75 billion ($1.33 billion) deal with the Canada Pension Plan Investment Board to sell a 49 percent stake in most of its wind and solar power assets. And it made a C$1.44 billion ($1.1 billion) deal to sell Midcoast Operating LP to an affiliate of private equity firm ArcLight Capital Partners.
