Energy
Canadian Press reports that Enbridge has bought a natural gas plant from Encana, one of the partners in the Kitimat LNG project.
Enbridge buys stake of Cabin Gas Plant in British Columbia from Encana
Encana Corp. has sold its stake in the Cabin gas plant in B.C. to Enbridge Inc…
Enbridge …will buy Encana’s 52 per cent interest in the plant, plus additional holdings from other partners for a total 57.6 per cent stake….
“Northeast B.C. is going to be a very important source of growth long-term for natural gas out of Western Canada, so it makes a lot of sense for us to build a position there,” Al Monaco, who is in charge of Enbridge’s natural gas business, said in an interview…
“We believe there is going to be the need for LNG exports off the West Coast, and that’s simply because the value of world gas prices, especially in Asia, far exceeds North American prices,” Monaco said.
The purchase announcement comes a day after Enbridge CEO Pat Daniel told Reuters that an LNG pipeline to the west coast is priority for the company.
Related Links
Reuters: Enbridge to buy Encana’s stake in Cabin gas plant
Marketwatch (news release) Encana agrees to sell interest in Horn River Basin’s Cabin Gas Plant for approximately C$220 million
Enbridge news release: Enbridge Enters Canadian Midstream Business with $900 Million Investment in Cabin Gas Plant Development