Pipeline company Enbridge’s unit Enbridge G&P have announced plans to buy Tupper Main and Tupper West gas plants as well as associated pipelines in northeastern British Columbia, Canada from Murphy Oil’s Canadian subsidiary for C$538m ($381m).
The Tupper Main and Tupper West plants are located 35km southwest of Dawson Creek and are adjacent to Enbridge’s existing Sexsmith gathering system.
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They are also situated close to the Alliance pipeline, which is 50% owned by Enbridge Income Fund.
Tupper Main was commissioned in late 2008, while the Tupper West went into service in early 2011.
Together, the plants have a processing capacity of 320 million cubic feet per day.
The assets, which include about 53km of high pressure pipelines, are expected to increase the company’s natural gas footprint in Montney.
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By GlobalDataEnbridge gas pipelines and processing president Gregory Harper said: "This acquisition fits extremely well with Enbridge’s low risk value proposition and supports our key priority of extending and diversifying growth.
"These assets, which are currently in operation, are underpinned by long-term contracts that generate highly predictable cash flows."
Enbridge plans to fund the purchase amount from available sources of liquidity.
The transaction is subject to regulatory review and approval and is expected to close in the second quarter of 2016.
Separately, Murphy Oil has signed an agreement to acquire some of Athabasca Oil’s assets in Alberta in a transaction valued at C$475m ($336m).
The company will acquire a 70% operated working interest in the Kaybob Duvernay lands and a 30% non-operated interest in Montney lands.
Image: Enbridge building in Edmonton, Alberta. Photo: courtesy of Kyle1278
