North American natural gas producer Encana Oil & Gas will sell its Fort Lupton natural gas plant in Colorado to Western Gas Partners for approximately $300m.
As per the deal, Encana will continue extracting 3,500 barrels of natural gas liquids per day from the processed natural gas.
The agreement further gives long-term gathering and processing cost stability for the company’s ongoing natural gas development in the Denver-Julesburg basin.
The Fort Lupton plant, which includes five natural gas gathering pipeline systems and compression facilities, processes about 84 million cubic feet per day (mmcf/d) of natural gas.
The plant, operated by Encana since 2000, is expected to close in 2011, and Encana recently requested companies interested in buying the plant to come up with a proposal.