Enbridge to buy Canadian gas plants, pipelines from Murphy Oil
Enbridge today announced the $538 million acquisition of Tupper Main and Tupper West gas plants and associated pipelines in northeastern British Columbia from the Canadian subsidiary of Murphy Oil.
"This acquisition fits extremely well with Enbridge's low risk value proposition and supports our key priority of extending and diversifying growth," said C. Gregory Harper, president of Gas pipelines and processing at Enbridge.
"These assets, which are currently in operation, are underpinned by long-term contracts that generate highly predictable cash flows," he added. "They also enhance our natural gas footprint within the Montney, one of the most attractive gas plays in North America, and add gas processing services in proximity to our existing Sexsmith gathering system."
The purchase price will initially be funded from available sources of liquidity. The investment was anticipated in Enbridge's long-term capital expenditure plan, the company said, adding that no incremental equity funding will be required beyond amounts previously identified.
Located 35 kilometers southwest of Dawson Creek, British Columbia, the Tupper Main and Tupper West plants are adjacent to Enbridge's existing Sexsmith gathering system and close to the Alliance pipeline, which is 50% owned by Enbridge Income Fund.
Tupper Main was placed into service in late 2008 and has a licensed capacity of 110 MMcf/d. Tupper West went into service in early 2011 and has a licensed capacity of 210 MMcf/d. The assets also include approximately 53 kilometers of high-pressure pipelines.
The transaction is subject to regulatory review and approval.
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