Enbridge Inc is selling some of its natural gas gathering and processing business in Canada to Brookfield Infrastructure Partners as part of the company’s effort to focus on its pipeline business. North Peace Economic Development Commission photo.

Enbridge selling asset sale valued at $4.3 billion

On Wednesday, Enbridge announced it is selling its Canadian natural gas gathering and processing assets in northeastern British Columbia and Alberta to Brookfield Infrastructure for $4.31 billion.

President and CEO Al Monaco says the company is selling the assets as part of its strategy to move “to a pure play regulated pipeline and utility business model”.

According to the company, the deal includes 19 natural gas and processing plants (G&P) and liquids handling facilities.  The Montney, Peace River Arch, Horn River and Liard basins assets have a total operating capacity of 3.3 Bcf/d and 3,550 Km of natural gas gathering pipelines.

Monaco added the sale “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 Alberta and British Columbia regulations, and those governed by federal National Energy Board regulations.

The deal involving the sale of the provincially regulated facilities is set to close in 2018, while the transaction involving the sale of the federally regulated facilities is anticipated to close in mid-2019.

Enbridge will hold onto the Westcoast transmission system in BC and the Alliance pipeline that carries natural gas from Western Canada to the Chicago market.

Brookfield says it intends to maintain the Canadian G&P workforce and anticipates that they will remain with the G&P business upon transaction close.

Enbridge and Brookfield say they will work together to ensure a safe and orderly transition of the G&P business’ operations.