BP announced this week that the previously-announced sale of
its Canadian natural
gas liquids (NGL) business to Plains Midstream Canada, a
wholly-owned subsidiary of Plains All American Pipeline, has
The sale, which also includes BPs liquefied petroleum gas
(LPG) business in Canada, was made for $1.67 billion in
Now a unit of Plains, the 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.
In total, the business owns or has rights to approximately
4,000 kilometers 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
As of April 1, BP's remaining business in Canada, including
the integrated supply and trading business, the oil sands, and
existing Arctic significant discovery Licenses will be under BP
Canada Energy Group, the company said.
Meanwhile, BP's exploration licenses in the Beaufort
Sea will continue to be under the direction of BP Exploration Operating Co. Ltd.
Plains Midstream Canada confirmed the deals closing in
a separate release. Approximately 450 employees were expected
to transfer to Plains upon completion of the deal.