ENBRIDGE SELLS CANADIAN GAS TRANSMISSION ASSETS

July 06, 2018

Enbridge has entered into definitive agreements to sell its Canadian natural gas gathering and processing business in the Montney, Peace River Arch, Horn River and Liard basins in British Columbia and Alberta (the G&P Business) to Brookfield Infrastructure and its institutional partners for a cash purchase price of CAN $4.31 billion, subject to customary closing adjustments and receipt of regulatory approvals.
The G&P Business includes 19 natural gas processing plants and liquids handling facilities, with a total operating capacity of 3.3 Bcf/d and 3,550 km of natural gas gathering pipelines.
“When combined with asset monetizations 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.” said Al Monaco, President and Chief Executive Officer of Enbridge. “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 $7.5 billion in asset monetizations announced in 2018, we have more than doubled our initial target of $3 billion.”
Separate sale agreements have been entered into for those facilities currently governed by provincial regulations (Alberta and B.C.), and those governed by federal National Energy Board regulations. The transaction involving the sale of the provincially regulated facilities is expected to close in 2018, while the transaction involving the sale of the federally regulated facilities is anticipated to close in mid-2019.
Proceeds from these transactions provide significant additional financing flexibility going forward as the Company continues to execute on its current portfolio of secured growth projects. Brookfield intends to maintain the Canadian G&P workforce and anticipates that they will remain with the G&P business upon transaction close. (Source: Enbridge)