Plains All American Acquires Spectra’s Canadian NGL Business
A Canadian subsidiary of Houston-based Plains All American Pipeline LP has acquired part to the business assets of Spectra Energy’s subsidiary Westcoast Energy Inc.
Plains announced Aug. 4 that its Plains Midstream Canada ULC has purchased the Canadian natural gas liquids (NGL) business from Westcoast for approximately $204 million (USD), including approximately $51 million for inventory and working capital.
“[Plains Midstream Canada] has been looking for the right opportunity to strengthen our strategic position and further optimize one of our core business areas,” said CEO Dave Duckett. “Integrated with our current infrastructure, these assets create flexibility and optionality in our NGL business platform supporting continued long-term profitability and growth for [the company].”
The acquisition includes an integrated system of assets, consisting of the Empress NGL extraction and fractionation facility, the Petroleum Transmission Co. pipeline, seven NGL terminals and two NGL storage facilities in Western Canada.
The acquired assets are a strategic complement to Plains Midstream Canada’s existing core Canadian NGL midstream operations adding 580 miles of pipeline from Empress, Alberta, to the Fort Whyte Terminal in Winnipeg, Manitoba, to the subsidiary’s existing 1,600 miles of NGL pipeline and increases our current pipeline capacity by an additional 15,500 barrels per day (bpd). The assets also include an additional 2.4 billion cubic feet per day (Bcf/d) of NGL extraction capacity and 63,000 bpd of fractionation capacity at Empress as well as 4.7 million barrels of NGL storage.
Tags: NGL, Plains All American Pipeline, Plains Midstream Canada, Spectra Energy, Westcoast Energy Inc.
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