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