By OGJ editors
HOUSTON, Nov. 5 -- Calgary-based AltaGas Services Inc. entered into an agreement to acquire EnCana Corp.'s interests in two natural gas pipelines in Suffield, Alta., and nine natural gas gathering and processing systems comprising the Wabasca system in northeastern Alberta for $115 million (Can.). EnCana also entered into long-term transmission and gathering and processing agreements with AltaGas.
The deal is expected to close before the end of this month.
The Suffield system transports natural gas produced on and around the Suffield military block to the TransCanada PipeLines Ltd.mainline at Burstall, Sask. . Total throughput capacity of the two 200 MMcfd pipelines is 220 MMcfd of gas.
The south Suffield system is 147 km of 6-16-in. line. The north Suffield system is 96 km of 16-in. line. Both systems carry gas from 32 townships.
AltaGas will hold 100% ownership in seven of the Wabasco gathering and processing systems and a 50% ownership in the remaining two systems. The Wabasco system also has 898 km of gathering pipeline, more than 26,000 hp of compression, and 65 MMcfd of current gas throughput.
