Canadian energy firm Enbridge has divested US-based midstream assets and monetized a portion of its renewables business for combined proceeds of approximately C$3.15bn ($2.4bn), in a bid to reduce debt.
The firm has sold its ownership interests in Midcoast Operating and its subsidiaries to AL Midcoast, an affiliate of ArcLight Capital Partners, for approximately C$1.4bn ($1.1bn) in cash.
Midcoast is involved in the gathering, processing, transportation and marketing of natural gas and natural gas liquids (NGL) with operations in Texas, Oklahoma and Louisiana.
The assets sold include 11,900 miles of gas and NGL pipelines; 25 processing plants with over 2Bcf/d of capacity; and 12 treating plants, an E/P fractionator, and numerous liquid logistics assets.
ArcLight’s future CEO Rob Bond said: “Midcoast owns a premier set of midstream assets that provide excellent Gulf Coast connectivity for natural gas and NGLs, bridging wide basis differentials that have arisen between producing basins and coastal demand centers.”
Enbridge also sold its 49% stake in select North American onshore renewable power assets, as well as a 49% interest in two German offshore wind projects to Canada Pension Plan Investment Board (CPPIB) for approximately C$1.75bn ($1.3bn) in cash.
Enbridge president and CEO Al Monaco said: “We are pleased to have moved quickly to execute and close these transactions at strong valuations.
“In addition, the recently announced sale of the Canadian gathering and processing assets takes our total non-core asset sales this year to almost $7.5 billion.
“Together, these transactions support our strategy to move towards a pure pipeline and utility business model and provide the company with significant additional financing flexibility as we fund our industry leading secured growth program.”
Recently, Enbridge has signed an agreement to sell its Canadian natural gas gathering and processing business to Brookfield Infrastructure Partners and its institutional partners for C$4.31bn ($3.28bn).
The firm agreed to sell its assets in the Montney, Peace River Arch, Horn River and Liard basins in British Columbia (B.C.) and Alberta.