Spectra Energy Corp has announced its indirect subsidiary, Westcoast Energy Inc., has entered into a definitive agreement to sell its ownership interests in Spectra Energy's Canadian natural gas liquids (NGL) business to Plains Midstream Canada ULC, a large scale, experienced operator in the Canadian NGL space, for a cash purchase price of approximately CAN$200 million plus customary closing adjustments.
The transaction includes Westcoast's Canadian NGL integrated system of assets, consisting of the Empress NGL 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. The Empress NGL business has served us well over the past decade and monetising it at this time benefits our investors and allows Empress to continue delivering on its successful track record," said Greg Ebel, President and Chief Executive Officer, Spectra Energy.
Subject to customary regulatory approvals and other closing conditions, the transaction is expected to close during the first half of the year (2016).
Adapted from press release by Francesca Brindle
Read the article online at: https://www.tanksterminals.com/storage-tanks/05042016/spectra-energy-sells-empress-ngl-pipeline-tanks-terminals-to-plains-midstream-canada-2946/