Enbridge Inc. (TSE: ENB)announced today that it will be selling 19 natural gas processing plants and liquids handling facilities for CAN 4.31 Billion (USD 3.28 Billion) in a definitive agreement with Brookfield. The agreement includes the sale of Enbridge’s natural gas gathering and processing businesses in Montney, Peace River Arch, Horn River, and Liard basins in British Columbia, and Alberta to Brookfield Infrastructure and its institutional partners.
Enbridge is North America’s largest pipeline operator, receiving deals for CAN 7.5 Billion in asset sales this year, surpassed its goal of CAN 3 Billion in asset monetization, helping to reduce the Company’s USD 28.6 Billion debt acquired when it purchased Spectra Energy Corp. last year.
Brookfield also bought a 90% stake in a Brazilian network of gas pipelines, storage, and processing plants from Petroleo Brasileiro SA, in 2016 for USD 5.2 Billion. The acquisition of these gas pipelines and processing plants from Enbridge by Brookfield is another step from Brookfield towards going into the business of distributing gas.
“When combined with asset monetization 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.
The Company’s other asset monetizations include selling its Midcoast Operating LP to ArcLight Capital Partners and some of its renewable power assets to Canada Pension Plan Investment Board.