Encana completes sale of Montney midstream assets

first_imgTotal cash consideration to Encana is approximately $461 million. Veresen Midstream is a 50/50 partnership of Veresen Inc. and affiliates of Kohlberg Kravis Roberts & Co. L.P (KKR).Under the terms of the agreement, Veresen Midstream will provide gathering and compression services to both Encana and the CRP under separate fee-for-service arrangements in areas of mutual interest within the Montney resource play.Veresen Midstream has agreed to undertake up to $5 billion of new midstream expansion within the area, while Encana will continue to operate the related facilities and lead future infrastructure construction on behalf of Veresen Midstream.- Advertisement -Veresen Midstream, however, will oversee all commercial and other ownership activities.“By unlocking value from these assets, we can redirect capital to strategic upstream opportunities, enhance our financial flexibility and maintain involvement in facility construction and operatorship in one of our strategic growth areas,” writes Renee Zemljak, Encana Executive Vice-President, Midstream, Marketing & Fundamentals.The transaction includes existing infrastructure comprised of gas gathering and compression facilities in the Dawson Creek area – consisting of approximately 500 kilometres of pipeline and 675 million cubic feet per day of compression.Advertisementlast_img read more

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