Encana Corp. (TSE: ECA, NYSE: ECA) and the Cutbank Ridge Partnership completed the sale of some Montney natural gas gathering and compression assets to Veresen Midstream LP, Encana said April 1.
Total consideration was about CA$461 million.
The transaction includes existing gas gathering and compression facilities in the Dawson Creek area--about 500 kilometers of pipeline and 675 million cubic feet per day of compression.
Veresen Midstream will provide gathering and compression services to Encana and Cutbank under separate fee-for-service arrangements in an area of mutual interest in the Montney. Veresen Midstream will take up CA$5 billion of midstream expansion in the area, Encana added.
Calgary, Alberta-based Encana operates the facilities and will lead future construction. Veresen Midstream will oversee commercial activities and other ownership activities.
Cutbank Ridge is a partnership between Encana and a subsidiary of Mitsubishi Corp. (OTC: MSBHY). Veresen Midstream is a 50/50 partnership between Veresen Inc. and KKR & Co. affiliates.
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