Plains All American Pipeline (NYSE: PAA) said April 4 its subsidiary has entered an agreement with a unit of Spectra Energy Corp. (NYSE: SE) to acquire Canadian NGL assets complimentary to its existing operations for C$200 million (US$150 million) in cash.
In the deal, Plain's indirect subsidiary, Plains Midstream Canada ULC, will acquire the Canadian NGL business of Spectra's Westcoast Energy Inc.
The transaction includes Westcoast’s NGL integrated system of assets in Western Canada, consisting of:
- Empress NGL extraction and fractionation facility;
- PTC transmission pipeline;
- Seven NGL terminals; and
- Two NGL storage facilities.
The assets consist of 2.4 billion cubic feet per day of NGL extraction capacity and 63,000 barrels per day (bbl/d) of fractionation 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.
In January, Houston-based Plains announced its plans to sell $200 million to $400 million in noncore assets during 2016.
On March 31, Plains completed two transactions for about $250 million. Five additional transactions totaling about $250 million are either under contract or in advanced stages of negotiation and are expected to be consummated in the second quarter of 2016.
Plains said it's also evaluating additional noncore assets sales. The company currently expects total asset sales for 2016 will range from $500 million to $600 million.
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