By OGJ editors
HOUSTON, Oct. 28 -- Provident Energy Trust agreed to buy EnCana Corp.'s NGL business for $586 million, subject to closing conditions and regulatory approvals. Both companies are based in Calgary.
The sale, expected to close by yearend, is part of EnCana's previously announced divestiture program to focus on nonconventional resource plays in North America (OGJ, July 12, 2004, p. 39). EnCana will use sale proceeds to reduce debt.
The sale includes four NGL plants in Alberta and Kinetic Resources, a NGL marketer. EnCana will sell 60% interest in the EnCana Empress Plant and retain a 10% interest with an option to sell the 10% to Provident for $12.6 million.
Other assets being sold are EnCana's 33% interest in the BP PLC E1 plant, 100% interest in a debutanizer, 50% interest in the Kerrobert pipeline and storage facility, and 49% interest in the Marysville underground storage terminal.
EnCana also agreed to provide up to $63 million, via a gas sales contract, if the commodity price relationship affecting the NGL business were to drop below historic averages during the next 2 years.
