BP sells Canadian NGL business to Plains Midstream Canada
BP announced today that it has agreed to sell its Canadian natural gas liquids (NGL) business to Plains Midstream Canada ULC (Plains Midstream), a wholly-owned subsidiary of Plains All American Pipeline, L.P. Plains Midstream will pay BP a total of US$ 1.67 billion in cash, subject to customary adjustments, for the business.
The sale is part of the company’s divestment programme to sell off non-core assets to pay for the US$ 45 billion damages arising from the Macondo spill.
BP’s Canadian NGLs business owns, operates and has contractual rights to assets involved in the extraction, gathering, fractionation, storage, distribution and wholesale marketing of NGLs across Canada and in the Midwest United States. Assets include NGL extraction plants; pipeline gathering systems; fractionation plants; and storage and specification product distribution facilities.
In total, the business owns or has rights to approximately 4000 km of pipeline systems; 21 million barrels of storage capacity; 232,000 bpd of fractionation capacity; and NGLs produced from 8.3 billion ft3/d of gas processing capacity.
Bob Dudley, BP Group Chief Executive, said, “Canada remains an important part of our portfolio of growth opportunities to meet North America’s energy needs.”
Read the article online at: https://www.worldpipelines.com/business-news/02122011/bp_sells_canadian_ngl_business_to_plains_midstream_canada/
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