Wednesday, April 6, 2016
Spectra Energy Corp. (Houston) said April 4 its subsidiary, Westcoast Energy Inc., has entered into a definitive agreement to sell its ownership interests in Spectra Energy’s Canadian NGL business to Plains All American Pipeline LP (Houston) subsidiary Plains Midstream Canada ULC (PMC). A cash purchase price of about $150 million is reported, plus customary closing adjustments. The transaction includes Westcoast’s Canadian NGL integrated system of assets, consisting of the Empress extraction and fractionation facility, the PTC transmission pipeline, seven NGL terminals, and two NGL storage facilities in western Canada.
“This divestiture reinforces Spectra Energy’s intent to focus on investing in stable, fee-based natural gas infrastructure in western Canada,” said Greg Ebel, president and CEO of Spectra Energy. “The Empress NGL business has served us well over the past decade and monetizing it at this time benefits our investors and allows Empress to continue delivering on its successful track record.”
The assets being acquired include 2.4 Bcfd of NGL extraction capacity and 63,000 bbld of fractionating capacity at Empress, as well as 4.7 MMbbl of NGL storage. The transaction is expected to close during the second quarter of this year, subject to regulatory approvals and the satisfaction of customary closing conditions.
“These assets are a strategic fit with our core Canadian NGL midstream operations, allowing PMC to enhance its operating efficiencies and commercial synergies while providing optionality for producers in western Canada and NGL customers throughout Canada and the northern U.S.,” said David Duckett, CEO of PMC. “The assets fit well into our existing NGL platform and allow for continued long-term profitability.”
“This divestiture reinforces Spectra Energy’s intent to focus on investing in stable, fee-based natural gas infrastructure in western Canada,” said Greg Ebel, president and CEO of Spectra Energy. “The Empress NGL business has served us well over the past decade and monetizing it at this time benefits our investors and allows Empress to continue delivering on its successful track record.”
The assets being acquired include 2.4 Bcfd of NGL extraction capacity and 63,000 bbld of fractionating capacity at Empress, as well as 4.7 MMbbl of NGL storage. The transaction is expected to close during the second quarter of this year, subject to regulatory approvals and the satisfaction of customary closing conditions.
“These assets are a strategic fit with our core Canadian NGL midstream operations, allowing PMC to enhance its operating efficiencies and commercial synergies while providing optionality for producers in western Canada and NGL customers throughout Canada and the northern U.S.,” said David Duckett, CEO of PMC. “The assets fit well into our existing NGL platform and allow for continued long-term profitability.”
