Encana to sell interest in Cabin Gas plant

By OGJ editors

Enbridge Inc. reached an agreement with Encana Corp., both of Calgary, to acquire Encana’s interest in the Cabin Gas plant in the Horn River basin of northeast British Columbia for $220 million (Can.). Closing is expected in December.

The agreement covers Encana’s interest of about 52% in the first two phases of the natural gas processing plant, which has regulatory approval for total processing capacity of 800 MMcfd.

Earlier this year, Encana sold its Fort Lupton gathering system and processing plant, and recently, it agreed to sell a portion of its Piceance midstream assets, also in Colorado, the company said.

Encana, as operator, has led construction of the Cabin Gas plant to serve producers in the Horn River gas play. The plant is about 60 km northeast of Fort Nelson, BC. Construction of the first phase is 70% complete. It has planned capacity of 400 MMcfd and is expected to be commissioned in third-quarter 2012.

The second phase, also designed to have capacity of 400 MMcfd, is estimated to be commissioned in third-quarter 2014, resulting in a total planned capacity of 800 MMcfd.

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