Canadian pipeline operator Enbridge has agreed to purchase a large underground natural gas storage facility in British Columbia from FortisBC for C$400m ($295.5m).
Enbridge executed this agreement with FortisBC through a wholly owned subsidiary.
Enbridge will purchase FortisBC’s stake in FortisBC Midstream, which owns a 93.8% interest in the Aitken Creek Gas Storage facility and a 100% interest in the Aitken Creek North Gas Storage facility. Aitken Creek Storage is the largest and only underground natural gas storage facility in British Columbia.
Located 120km north-east of Fort St John, the facility has a working gas capacity of 77 billion cubic feet.
Aitken Creek Storage, which is located in the centre of the Montney production region, is a key part of the natural gas transmission system in Western Canada.
All three of Western Canada’s main long-distance natural gas transportation routes, including Enbridge’s Westcoast Pipeline and Alliance Pipeline, are connected to the storage facility.
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Enbridge executive vice-president and president Gas Transmission and Midstream Cynthia Hansen said: “Enbridge is pleased to acquire Aitken Creek Storage, a well-located and connected facility that will enable us to continue to meet regional energy needs as well as support increasing demand for west coast LNG exports.
“Natural gas plays an increasingly important role in the energy transition, and this investment further aligns with Enbridge’s focus on providing the affordable, sustainable and reliable energy that is needed now and into the future.”
Subject to the fulfilment of regulatory approvals and closing requirements, the transaction is anticipated to close later in 2023.
BMO Capital Markets served as the transaction’s only financial advisor, and Dentons Canada served as the sole legal counsel.
In September 2022, Enbridge agreed to divest an 11.57% interest in seven pipelines in the Athabasca region of northern Alberta, Canada, to a group of 23 indigenous communities in a deal worth C$1.12bn.