Go to the Globe and Mail homepage

Jump to main navigationJump to main content

AdChoices
An Enbridge Inc. tank farm stands in the Athabasca Oil Sands near Fort McMurray on Wednesday, June 19, 2014. (Ben Nelms/Bloomberg)
An Enbridge Inc. tank farm stands in the Athabasca Oil Sands near Fort McMurray on Wednesday, June 19, 2014. (Ben Nelms/Bloomberg)

Enbridge buying Murphy Oil gas plants in northeastern B.C. for $538-million Add to ...

Enbridge Inc. is buying the Tupper Main and Tupper West gas plants and associated pipelines in northeastern British Columbia from a subsidiary of Murphy Oil for $538-million.

Enbridge says the deal initially will be funded from available sources of liquidity, adding that the purchase had been anticipated in the company’s long-term capital expenditure plan.

The two plants are about 35 kilometres southwest of Dawson Creek, adjacent to Enbridge’s existing Sexsmith gathering system and close to the Alliance pipeline, which is 50 per cent owned by Enbridge Income Fund.

“This acquisition fits extremely well with Enbridge’s low-risk value proposition and supports our key priority of extending and diversifying growth,” said Gregory Harper, president of gas pipelines and processing.

“These assets, which are currently in operation, are underpinned by long-term contracts that generate highly predictable cash flows. They also enhance our natural gas footprint within the Montney.”

The transaction is subject to regulatory review and approval.

Report Typo/Error
 

More Related to this Story

Topics

In the know

The Globe Recommends

loading

Most popular videos »

Highlights

More from The Globe and Mail

Most popular