EnCana Closes Pipeline Sale
EnCana Corporation has closed the sale of its indirect 70 percent interest in the Cold Lake Pipeline System to Inter Pipeline Fund for approximately $425 million, subject to closing and post-closing adjustments. The sale is part of EnCana's strategic realignment to focus on its highest growth, highest return core assets.
The Cold Lake Pipeline System delivers oil from the expansive Cold Lake oil sands production region to Alberta's primary transportation hubs at Edmonton and Hardisty. EnCana has retained oil transportation capacity on the system for its growing production through its existing long-term contracts. EnCana plans to use the sale proceeds for general corporate purposes.
As previously announced, EnCana has agreed to sell its indirect 100 percent interest in Express Pipeline System for about $1.175 billion, which includes the assumption of approximately $582 million in debt, to a consortium comprised of BC Gas Inc. (TSX: BCG), Borealis Infrastructure Management Inc. and Ontario Teachers' Pension Plan. The Express sale is expected to close by mid January.