By JUDY McKINNON
Enbridge said Monday it has agreed with the
other owners of the Cabin Gas Plant development in British
Columbia to defer commissioning of Phase 1 of the project and construction of Phase 2.
The Calgary pipeline company owns a 71% stake
in the natural-gas processing facility, including a 52% stake
it purchased from Encana late last year for about 220 million
Canadian dollars ($222 million).
The Cabin plant had regulatory approvals for
processing capacity of about 800 million cubic feet/day of
natural gas, and Phase 1 was expected to be in service late
this year. Phase 2 was expected to be ready for service in the
third quarter 2014.
Enbridge, which didn't say why the development
was deferred, had said it expected to invest about C$1.1
billion by the completion of both phases of Cabin.
A North American-wide gas glut has depressed
prices to the lowest level in a decade.
Separately, Enbridge said it has entered a
midstream services deal with Encana to develop gas gathering
and compression facilities in the Peace River Arch
area of northwestern Alberta.
Enbridge said it has agreed to acquire from Encana certain
gathering and compression facilities in the area that are
currently in service and under construction.
Specific financial terms of the deal weren't disclosed, but
Enbridge said the midstream services agreement will parallel
previously established terms between the two companies reached
Dow Jones Newswires