BP to sell Canadian natural gas liquids business for $1.67bn

BP has agreed to sell its Canadian natural gas liquids business to a unit of US-based Plains All American Pipeline for $1.67bn.

Plains Midstream Canada, the company’s Canadian natural gas liquids business, owns or has rights to assets including pipeline systems, fractionation plants, and storage and specification product distribution facilities.

The subsidiary will acquire 4,000km of pipeline systems, 21 million barrels of storage capacity and 232,000 barrels per day of fractionation capacity.

The company will also acquire natural gas liquids produced from 8.3 billion cubic feet per day of gas processing capacity.

The transaction will close in 2012, subject to all governmental and regulatory approvals.