Enbridge Inc. announced that, through a wholly-owned subsidiary, it has entered into a definitive agreement with FortisBC Holdings Inc. to acquire its interest in FortisBC Midstream Inc., which holds a 93.8% interest in Aitken Creek Gas Storage facility and a 100% interest in Aitken Creek North Gas Storage facility (collectively, Aitken Creek Storage) for $400 million, subject to customary closing adjustments.
Aitken Creek Storage is an underground reservoir located 120 kilometres northeast of Fort St. John, B.C., and is the largest and only underground natural gas storage facility in B.C., totaling 77 billion cubic feet of working gas capacity.
Located in the heart of the prolific Montney production region, Aitken Creek Storage is an integral part of the natural gas transmission system in Western Canada and the only storage facility that connects to all three major long-haul natural gas transportation lines in Western Canada including Enbridge's Westcoast Pipeline and Alliance Pipeline.
"Enbridge is pleased to acquire Aitken Creek Storage, a well-located and connected facility that will enable us to continue to meet regional energy needs as well as support increasing demand for west coast LNG exports," said Cynthia Hansen, Enbridge Executive Vice President and President, Gas Transmission and Midstream. "Natural gas plays an increasingly important role in the energy transition, and this investment further aligns with Enbridge's focus on providing the affordable, sustainable and reliable energy that is needed now and into the future."
The transaction is expected to close later in 2023, subject to receipt of customary regulatory approvals and closing conditions. BMO Capital Markets acted as exclusive financial advisor and Dentons Canada LLP acted as exclusive legal advisor on the transaction.
