Encana to sell some natural gas facilities in British Columbia

Mon Dec 22, 2014 5:28pm EST
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Dec 22 (Reuters) - Canada's Encana Corp will sell some natural gas gathering and compression facilities in British Columbia it owns jointly with a unit of Mitsubishi Corp to Veresen Midstream LP.

Encana said it would receive about C$412 million ($354 million) from the sale and actual costs accrued in 2015.

The facilities include a 500-kilometer pipeline and compression facilities of 675 million cubic feet per day.

Veresen Midstream will provide gathering and compression services to Encana and Cutbank Ridge Partnership, its partnership with a Mitsubishi unit, for a fee.

Veresen Midstream, a joint venture of Veresen Inc and KKR & Co LP, will also invest up to C$5 billion to support development in the Montney shale.

Encana and Cutbank Ridge Partnership plan to invest $600 million-$700 million in the Montney shale in 2015, the Canadian company said.

The transaction is expected to close in the first quarter of 2015. ($1 = C$1.16) (Reporting by Narottam Medhora in Bengaluru; Editing by Kirti Pandey)