By the OGJ Online Staff
HOUSTON, Oct. 22 -- BC Gas Inc., Vancouver, agreed to acquire two business units from Westcoast Energy Inc., Vancouver, for $208 million (Can.).
Acquisition of Centra Gas British Columbia and Centra Gas Whistler Inc. gives BC Gas control of all Centra Gas's Vancouver Island and British Columbia coastal assets, including 615 km of high-pressure transmission mains and more than 3,000 km of intermediate-pressure transmission and distribution mains.
BC Gas also will assume Centra Gas's $298 million debt. The deal is subject to regulatory approval, but should close by Jan. 1.
Centra Gas provides natural gas to 70,000 homes and businesses and seven pulp mills on Vancouver Island and the British Columbia coast.
John Reid, BC Gas president and CEO, said, "Centra Gas has excellent growth potential, including the expansion of natural gas service to residential and commercial customers and the opportunity to service gas-fired electricity generating plants on Vancouver Island."
Centra Gas Whistler provides piped propane to 2,000 customers in the resort municipality of Whistler.
Westcoast said the sale gives it a positive contribution to net income of $33 million to be booked at close.