Encana Corporation has reached an agreement to sell two natural gas processing plants servicing the Cutbank Ridge area to Veresen Inc. for approximately C$920 million.
The sale includes Encana’s 100 percent interest in its Steeprock plant in northeast British Columbia and its Hythe plant in northwest Alberta, along with compression and associated gathering pipelines.
“This sale agreement marks the conclusion of the major components in our 2011 divestiture program, which, upon closing of all transactions, will result in proceeds of about US$3.5 billion. Although not all of our announced transactions will be completed this year, the expected proceeds will help us achieve our 2011 target range for net divestitures of between $1 billion and $2 billion. Further, the transactions that are expected to close after year-end will give us a solid start on our 2012 divestiture program, which will be part of our 2012 capital investment program announcement in the first quarter. Proceeds from these non-core asset sales are expected to supplement cash flow generation, strengthen the company’s balance sheet and provide financial flexibility,” said Randy Eresman, Encana’s President & Chief Executive Officer.
LNG World News Staff, December 8, 2011; Image: Encana