Plains acquires Canadian NGL, LPG business of BP
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 been completed.
The sale, which also includes BPs liquefied petroleum gas (LPG) business in Canada, was made for $1.67 billion in cash.
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 processing capacity.
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.
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