's indirect subsidiaryWestcoast Energy Inc.has agreed to sell its ownership interests in Spectra's Canadian NGL business toPlains All American Pipeline LP'sPlains Midstream Canada ULCfor about C$200 million.
The assets includethe Empress NGL extraction and fractionationfacility, the PTC transmission pipeline, seven NGL terminals and twoNGL storage facilities in western Canada that yield 2.4 Bcf/d of NGL extractioncapacity, 63,000 barrels per day of fractionation capacity at Empress and 4.7 millionbbl of NGL storage, according to an April 4 news release.
"This divestiturereinforces Spectra Energy's intent to focus on investing in stable, fee-based naturalgas infrastructure in western Canada," Greg Ebel, president and CEO of Spectra,said in the release. "The Empress NGL business has served us well over thepast decade and monetizing it at this time benefits our investors and allows Empressto continue delivering on its successful track record."
"Theseassets are a strategic fit with our existing core Canadian NGL midstream operations,allowing [Plains Midstream Canada] to enhance its operating efficiencies and commercialsynergies while providing optionality for producers in western Canada and NGL customersthroughout Canada and the northern U.S.," David Duckett, CEO of Plains MidstreamCanada, said in a separate release from Plains All American.
The deal isscheduled to close in the second quarter, subject to customary closing conditions,according to the releases.
In addition,Plains All American said it completed two transactions for about $250 million aspart of its plan to sell $200 million to $400 million in noncore assets in 2016.The partnership intends to make an additional five transactions worth about $250million, according to its news release.
The additionaldeals are either under contract or in advanced stages of negotiation and are anticipatedto also close in the second quarter. Plains All American is also considering sellingmore noncore assets, which would raise its expected total asset sales in 2016 toa range of $500 million to $600 million.