CALGARY, A.B. — Enbridge has acquired the Tupper Main and Tupper West gas plants and associated pipelines from the Canadian subsidiary of Murphy Oil Corporation for a price tag of $538 million.
The Tupper Main and Tupper West plants are located about 35 kilometres southwest of Dawson Creek are adjacent to Enbridge’s existing Sexsmith gathering system and close to the Alliance pipeline.
Tupper Main was placed into service in late 2008, and Tupper West went into service in early 2011. The assets include approximately 53 kilometres of high pressure pipelines.
C. Gregory Harper, President of Gas Pipelines and Processing, Gregory Harper, says the acquisition fits extremely well with Enbridge’s low risk value proposition and supports our key priority of extending and diversifying growth.
“These assets, which are currently in operation, are underpinned by long-term contracts that generate highly predictable cash flows,” he added.
“They also enhance our natural gas footprint within the Montney, one of the most attractive gas plays in North America, and add gas processing services in proximity to our existing Sexsmith gathering system.”
Enbridge says the purchase price will initially be funded from available sources of liquidity.
The transaction is still subject to regulatory review and approval.