Enbridge sells natural gas business for $4.3 billion

Gathering and processing operations in Alberta and B.C. sold to Brookfield Infrastructure and partners

Mario ToneguzziCalgary-based Enbridge is selling its Canadian natural gas gathering and processing business in the Montney, Peace River Arch, Horn River and Liard basins in British Columbia and Alberta.

Brookfield Infrastructure and its institutional partners are acquiring the assets for $4.31 billion.

The deal is subject to customary closing adjustments and receipt of regulatory approvals, said the company. Enbridge said the business includes 19 natural gas processing plants and liquids handling facilities, with a total operating capacity of 3.3 Bcf/d and 3,550 kilometres of natural gas gathering pipelines.

“When combined with asset monetizations announced in May, the sale of our Canadian (gathering and processing) 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, in a statement.

“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.”

The company also said that separate sale agreements have been entered into for those facilities currently governed by provincial regulations in 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,” said Enbridge in a news release.

 “I’d like to thank our colleagues at the (gathering and processing) business, who have done an exceptional job building and expanding a substantial gathering and processing franchise while operating the business safely and reliably day-in and day-out,” added Monaco.

RBC Capital Markets acted as financial adviser and Torys LLP acted as legal advisers to Enbridge on the transaction.

Respected business writer Mario Toneguzzi is a veteran Calgary-based journalist who worked for 35 years for the Calgary Herald in various capacities, including 12 years as a senior business writer.

Respected business writer Mario Toneguzzi is a veteran Calgary-based journalist who worked for 35 years for the Calgary Herald in various capacities, including 12 years as a senior business writer.


Enbridge natural gasThe views, opinions and positions expressed by columnists and contributors are the author’s alone. They do not inherently or expressly reflect the views, opinions and/or positions of our publication.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.