Encana to sell Canadian natural gas processing plants

Encana Corporation will sell two natural gas processing plants in Canada to energy infrastructure company Veresen for C$920m ($904m).

The facilities being sold include the Steeprock plant in north-east British Columbia and Hythe plant in north-west Alberta.

The two plants serve the Cutbank Ridge area and have a combined natural gas processing capacity of approximately 516 million cubic feet per day.

The sale of the plants, along with compression and associated gathering pipelines, will close in the first quarter of 2012, subject to regulatory approvals.

Encana president and CEO Randy Eresman said the sale of the gas processing facilities unlocks midstream value that Encana can reinvest in its core business of developing natural gas and growing liquids production.