Enbridge Inc (TSX:ENB) revealed that it has struck a definitive agreement with FortisBC Holdings Inc to acquire the Aitken Creek natural gas storage facility in British Columbia for C$400 million (US$294.68 million).
Aitken Creek Storage is an underground reservoir located 120 kilometers northeast of Fort Saint John. It’s the only underground natural gas storage facility in British Columbia, totaling 77 billion cubic feet of working gas capacity.
Located in the heart of the Montney production region, Aitken Creek Storage plays a big role in the natural gas transmission system in Western Canada. The storage facility is connected to all three major long-haul natural gas transportation lines in western Canada including Enbridge's Westcoast Pipeline and Alliance Pipeline.
"Enbridge is pleased to acquire Aitken Creek Storage, a well-located and connected facility that will enable us to continue to meet regional energy needs as well as support increasing demand for west coast LNG exports," said Cynthia Hansen, executive VP and president, Gas Transmission and Midstream at Enbridge.
The transaction is expected to close later in 2023.
BMO Capital Markets (NYSE:BMO) acted as financial advisor and Dentons Canada LLP acted as legal advisor on the deal.
Calgary, Alberta-based Enbridge has a North American natural gas, oil, renewable power networks and growing European offshore wind portfolio.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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