Enbridge to sell $4.3bn in natural gas assets to Brookfield
Canadian pipeline giant Enbridge has agreed to sell a range of natural gas assets, held within its Canadian gathering and processing (G&P) business, to Brookfield Infrastructure in a deal worth CAD$4.31bn.
The G&P business includes 19 natural gas processing plants and liquid handling facilities that, in total, have an operating capacity of 3.3bn cubic feet of gas per day (cf/d), alongside 3,550km of existing pipeline networks.
The sale raises Enbridge’s total asset divestiture’s this year to approximately $7.5bn after the firm previously sold a 49% stake in its German offshore wind projects to CPPIB for $2.25bn and its US natural gas business, Midcoast Operating LP to Archlight Capital for $1.12bn.
“When combined with asset monetisations announced in May, the sale of our Canadian G&P business significantly advances our strategic priority of moving to a pure play regulated pipeline and utility business model,” said Al Monaco, President and Chief Executive Officer of Enbridge.
“With a total of roughly $7.5bn in asset monetisations announced in 2018, we have more than doubled our initial target of $3bn.”
Brookfield has revealed that it will aim to maintain the current Canadian G&P workforce following the completion of the transaction that is subject to customary closing agreements.