Enbridge to sell Canadian natural gas assets for $3.27bn

Enbridge has signed agreements for the sale of its Canada-based G&P business to Brookfield Infrastructure and its institutional partners in a C$4.31bn ($3.27bn) deal.

Located in the Montney, Peace River Arch, Horn River and Liard basins in British Columbia (BC) and Alberta, the assets being sold include 19 natural gas processing plants and liquid handling facilities, as well as 3,550km of gathering pipelines.

The processing plants have a total operating capacity of 3.3Bcf/d.

Enbridge president and CEO Al Monaco said: “When combined with asset monetisations announced in May, the sale of our Canadian G&P Business significantly advances our strategic priority of moving to a pure play regulated pipeline and utility business model.

“It also demonstrates our focus on prudent capital allocation and ensuring the continued strength of our balance sheet and funding flexibility. With a total of roughly $7.5bn in asset monetisations announced in 2018, we have more than doubled our initial target of $3bn.”

The company has signed separate sale agreements for facilities currently regulated by the provincial regulations and federal National Energy Board regulations.

While the sale of the provincially regulated facilities will be completed later this year, the closure of the transaction involving the disposal of the federally regulated facilities is slated for next year.

Enbridge will use the proceeds from the deals to support its current portfolio of growth projects.

The company will continue to operate the Westcoast transmission system in BC and the Alliance natural gas pipeline that connects western Canada to the Chicago market.