Enbridge Inc. has entered a definitive agreement to acquire FortisBC Holdings Inc. interests in two natural gas storage facilities. (Source: Shutterstock)
Enbridge Inc. has entered a definitive agreement to acquire FortisBC Holdings Inc. interests in two natural gas storage facilities, collectively known as the Aitken Creek Storage facilities, for CA$400 million (US$295 million), according to a May 1 press release.
The North American midstream company will acquire interests held by FortisBC Midstream Inc., including 93.8% interest in the Aitken Creek Gas Storage facility and 100% interest in the Aitken Creek North Gas storage facility.
Aiken Creek Storage, in the heart of Montney production area, are underground reservoirs 120 km northeast of Fort St. John, British Columbia. It is the largest and only underground facility in the region with a capacity to hold 77 Bcf of working gas.
The deal is a mirror image of a March 1 transaction on the U.S. Gulf Coast Enbridge announced on March 1.
In that deal, Enbridge entered into an agreement with Crestwood Equity Partners LP and Brookfield Infrastructure Partners to purchase the Tres Palacios gas storage facility in Matagorda, Texas for $335 million.
Canada’s Enbridge said Aitken Creek Storage is an integral part of the natural gas transmission system in Western Canada and the only storage facility that connects to all three major long-haul natural gas transportation lines, including Enbridge's Westcoast Pipeline and Alliance Pipeline.
"Enbridge is pleased to acquire Aitken Creek Storage, a well-located and connected facility that will enable us to continue to meet regional energy needs as well as support increasing demand for west coast LNG exports," Cynthia Hansen said, Enbridge’s executive vice president and president, gas transmission and midstream. "Natural gas plays an increasingly important role in the energy transition, and this investment further aligns with Enbridge's focus on providing the affordable, sustainable and reliable energy that is needed now and into the future."
The transaction is expected to close in 2023, subject to receipt of customary regulatory approvals and closing conditions.
BMO Capital Markets acted as exclusive financial adviser and Dentons Canada LLP acted as exclusive legal adviser on the transaction.
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