Encana Corp. agreed to sell two natural gas processing plants and associated pipelines in the Cutbank Ridge area of western Canada to Veresen Inc., Calgary, for $920 billion (Can.).
For Encana, the deal ends a 2011 divestiture program in a strategy to focus on oil and gas production in the US and Canada (OGJ Online, Nov. 3, 2011).
Veresen, a partner in the Alliance dense-phase gas pipeline between Canada and US Midwest and related gas plants, will acquire gas processing plants with combined capacity of 516 MMcfd in Hythe, Alta., and Steeprock, BC, and 370 km of gathering pipeline.
The deal includes a long-term gathering and processing fee agreement covering Encana’s Cutbank Ridge gas production.
Among other deals announced or closed this year, Encana has sold its Fort Lupton gas plant in Colorado, other midstream assets in the Piceance basin area of Colorado, the Cabin ngas plant in British Columbia, and producing properties in North Texas.