TransCanada acquires BP’s Crossfield gas storage facility in Canada

TransCanada will buy BP’s 40% share in the Crossfield gas storage facility in Alberta, Canada, for $210m.

Following the transaction, TransCanada will hold 100% rights in the Crossfield facility, located about 50km north of the city of Calgary.

The deal also includes BP’s base gas in the facility, mineral interests in the Crossfield area and possession of the Elkton production unit and related surface land.

It will add an additional 27 billion cubic feet of natural gas storage capacity to TransCanada’s existing portfolio in Alberta.

TransCanada president and CEO Russ Girling said that the additional stake in the facility will enhance the company’s ability to offer better services to its customers in Alberta and provide organic growth platform for the company’s storage business.

"This latest energy infrastructure acquisition enhances TransCanada’s ability to reliably deliver an essential balancing service to the gas markets in western Canada," said Girling.

The transaction, expected to complete in the first quarter of 2013, is subject to satisfactory meeting of certain conditions.

Transcanada is also acquiring BP’s interest in CrossAlta Gas Storage and Services, which is a joint marketing venture between the two companies.

The company runs a natural gas pipelines network, extending more than 68,500km and connecting major gas supply basins in North America.

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Image: Transcanada’s headquarters in Calgary, Alberta. Image courtesy of Qyd.