Enbridge increases stake in Canada gas plant
Combined with Enbridge's previously announced acquisition of a 57.7% majority interest, Enbridge will hold a 71.0% ownership interest in the development.
"We are pleased to have entered into this arrangement and to increase our overall investment in the Cabin Gas Plant development," said Al Monaco, president of gas pipelines for Green Energy & International, Enbridge.
"We look forward to working with producers in this region as they develop the potential of the Horn River basin and other shale gas opportunities."
The transaction is on the same terms as the previously-announced deal with Encana Corp. Upon completion of phases 1 and 2, Enbridge's total investment is now expected to be approximately $1.1 billion.
Closing of the transaction is subject to normal closing conditions.
The Cabin Gas Plant development is located 60 kilometers northeast of Fort Nelson, British Columbia in the Horn River Basin.
Phase 1 will have 400 Mmcf/d of natural gas processing capacity. The plant is currently under construction and is expected to be in-service in late 2012.
Phase 2 will add an additional 400 Mmcf/d of capacity and has been sanctioned by producers and received regulatory approval. The Phase 2 plant is expected to be ready for service in the third quarter 2014.
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