Pacific Northern to buy British Columbia facility

Wed Apr 7, 2010 6:39pm EDT
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(Reuters) - Canada's Pacific Northern Gas Ltd said it will buy a hydro-electricity generation facility from Kiewit Hydropower Investors Inc and Renewable Power for about C$17 million ($16.92 million) to boost its asset base.

The 9.8 MW McNair Creek facility in British Columbia will be cash flow positive and is expected to add to per-share earnings in 2011, the company said.

Vancouver-based Pacific Northern said 97 percent of the acquisition cost will be funded by assumption of existing non-recourse debt as well as utilization of current bank facility.

Pacific Northern Gas also entered into a development and operating deal with Skookum Power Corp, gaining access to extensive expertise in hydrology, engineering and commercial development.

Shares of Pacific Northern Gas closed at C$22.70 Wednesday on the Toronto Stock Exchange.

($1=1.005 Canadian Dollar)

(Reporting by R. Manikandan in Bangalore; Editing by Ratul Ray Chaudhuri)