Enbridge Inc. says it has agreed to sell its stakes in the Alliance pipeline and Aux Sable gas processing facility to Pembina Pipeline Corp. for $3.1 billion.The Enbridge logo is shown at the company's annual meeting in Calgary on May 9, 2018. THE CANADIAN PRESS/Jeff McIntosh
CALGARY – Enbridge Inc. says it has agreed to sell its stakes in the Alliance pipeline and Aux Sable gas processing facility to Pembina Pipeline Corp. for $3.1 billion.
The Alliance pipeline is a 3,848-kilometre pipeline stretching southeast from B.C. that brings gas into Chicago’s Aux Sable, one of the largest natural gas liquids processing facilities in North America.
Enbridge currently owns 50 per cent of Alliance and 42.7 per cent of Aux Sable, while Pembina Pipeline owns the remaining 50 per cent of Alliance and 42.7 per cent of Aux Sable.
As part of the transaction, Pembina, which is the current operator of Aux Sable, will become the sole operator of Alliance.
The $3.1 billion purchase price includes non-recourse debt of approximately $0.3 billion.
Enbridge says the proceeds from the sale will fund a portion of its previously announced US$14-billion acquisition of three U.S.-based gas utilities, and will also be used to pay down debt.
The deal is expected to close in the first half of 2024.
This report by The Canadian Press was first published Dec. 13, 2023.
Companies in this story: (TSX:ENB; TSX:PPL)
