By OGJ editors
HOUSTON, Mar. 6 -- EnCana Corp. plans to sell its gas storage business interests to the Carlyle-Riverstone Global Energy & Power Fund, a private equity fund managed by Riverstone Holdings LLC and The Carlyle Group, for $1.5 billion after adjustments.
This sale is part of a divestment program enabling EnCana to concentrate on natural gas and in situ oil sands projects in North America.
Being sold are the AECO Hub, the 85 bcf Suffield facility and 40 bcf Countess facilities in Alberta, the 24 bcf Wild Goose facility in California, the 15 bcf Salt Plains facility in Oklahoma, and the 27 bcf Starks facility under development in Louisiana.
EnCana will retain the 10 bcf Hythe facility in northwestern Alberta, which is integrated with its upstream operations.
Meanwhile, EnCana is concluding the $350 million sale of the Chinook oil discovery off Brazil to Norsk Hydro AS. It has sold its Entrega Pipeline in Colorado to Kinder Morgan Energy Partners LP and Sempra Pipelines & Storage for $240 million. It recently sold its Ecuador interests for $1.42 billion. EnCana plans to use proceeds to pay down debt and buy back stock.
