BP has agreed to sell its Canadian natural gas liquids (NGL)
and liquefied petroleum gas (LPG) business to the
midstream subsidiary of Plains All American Pipeline for $1.67
billion in cash, subject to customary adjustments.
BPs Canadian NGLs business owns, operates and has
contractual rights to assets involved in the extraction,
gathering, fractionation, storage, distribution and wholesale
marketing of NGLs across Canada and in the Midwest US.
Assets include NGL extraction plants; pipeline gathering
systems; fractionation plants; and storage and specification
product distribution facilities.
"BPs Canadian NGL business is an asset-rich platform that
significantly expands our LPG asset footprint, providing a
supply-based complement to our existing demand-focused business
and making [Plains] one of the largest LPG service providers in
North America, said Greg L. Armstrong, CEO of
We expect to be able to generate meaningful operating and
commercial synergies by more fully connecting, integrating and
utilizing these assets together with our existing North
American LPG assets and our Canadian crude oil assets and
activities," he added.
In total, the business owns or has rights to approximately
4,000 kilometres of pipeline systems; 21 million bbl of storage
capacity; 232,000 bpd of fractionation capacity; and NGLs
produced from 8.3 billion cubic feet/day of gas processing
Bob Dudley, BP CEO, said: Canada remains an important
part of our portfolio of growth opportunities to meet North
Americas energy needs.
The business employs approximately 450 people who will
transfer to Plains Midstream upon completion of the deal.
Completion of the transaction is subject to closing
conditions including the receipt of all necessary governmental
and regulatory approvals.
The transaction is expected to be completed by the end of
the first half of 2012.
Credit Suisse acted as the sole financial advisor to BP for
this transaction, according to the company.