TransCanada Corp. agreed to pay BP plc C$210 million to buy out the producer’s interest in the Crossfield Gas Storage facility near Edson, AB, as well as its stakes in an affiliated marketing joint venture (JV) between the two operators.
The purchases would give TransCanada 100% ownership in the Crossfield facility and add 27 Bcf of storage capacity to its existing Alberta portfolio. TransCanada has operated Crossfield, in which BP held a 40% stake, since 2011. TransCanada also wants to buy out BP’s interests in CrossAlta Gas Storage & Services Ltd., their affiliated JV, which operates a 40 Bcf storage facility.
“The addition of the Crossfield Gas Storage facility into our existing portfolio will increase our ability to offer unique services to our customers in Alberta and provide another organic growth platform for our storage business,” said TransCanada CEO Russ Girling.
As part of the transaction, TransCanada also plans to acquire BP’s base gas in the facility, all of its mineral interests in the Crossfield area, including its ownership interest in the Elkton production unit, and related surface land. BP is to maintain a transactional relationship with TransCanada as a storage customer.
TransCanada unveiled plans for Crossfield in early 2005 (see Daily GPI, Jan. 20, 2005). The transaction with BP is scheduled to be completed early next year.
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