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The Globe and Mail

Enbridge to buy some gas facilities from Encana

Enbridge Inc. President and CEO Patrick Daniel speaks at the company's annual general meeting in Toronto on Wednesday, May 9, 2012.


Enbridge Inc., Canada's second-largest pipeline company, said it will buy certain gas facilities from Encana Corp in the Peace River Arch region in northwestern Alberta as it looks to strengthen its gathering and compression business.

The deal also includes facilities under construction.

Enbridge said its total investment in the region is expected to be about $264-million after these facilities are completed in 2013.

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Encana, Canada's biggest gas producer, has been shifting to more valuable oil and liquids-rich gas production with dry gas prices under pressure due to an oversupply of the fuel in North America.

"This agreement in the Peace River Arch region represents another step in the execution of our strategy to establish a strong position in the Canadian midstream business," said Leon Zupan, president of Enbridge's gas pipelines unit.

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