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Enbridge will buy major gas assets from US’ Murphy Oil for USD 382 million, Canada’s second-largest pipeline company stated yesterday.

Enbridge to buy Murphy’s Montney assets

CALGARY, January 28, 2016 – Enbridge will buy major gas assets from US’ Murphy Oil for USD 382 million, Canada’s second-largest pipeline company stated yesterday.

The signed agreement is for two plants in northeastern British Colombia, situated 35km southwest of Dawson Creek. They neighbour Enbridge’s Sexsmith gathering system and 50%-owned Alliance pipeline. The assets are capable of producing 9.06 mcm (320 mcf) per day.

 

The transaction is expected to close in Q2 and is subject to regulatory review and approval.

“These assets, which are currently in operation, are underpinned by long-term contracts that generate highly predictable cashflows. They also enhance our natural gas footprint within the Montney,” said Gregory Harper, president of gas pipelines and processing for Enbridge.

The Montney formation is a major shale resource that stretches 130,000 sq.km and contains 12.7 tcm (449 tcf) of natural gas and 1.13 billion barrels of oil, according to a province-funded appraisal in 2013.

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