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Enbridge closes deal for Cabin gas plant in Canada

Enbridge on Friday announced the closing of its acquisition of a 71.0% interest in phases 1 and 2 of the Cabin gas plant development in Canada, which together will be capable of processing 800 million cubic feet per day (Mmcf/d) of natural gas.

Upon completion of phases 1 and 2, Enbridge's total investment is expected to be approximately $1.1 billion.

The Cabin gas plant is a natural gas processing facility located approximately 60 kilometers northeast of Fort Nelson, B.C. in the Horn River Basin.

Phase 1 of the development will have 400 Mmcf/d of natural gas processing capacity. The plant is currently under construction and is expected to be in-service in the third quarter 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.

Capacity for both phases 1 and 2 has been fully taken up by Horn River producers, according to the company.

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