Canada’s Enbridge Inc. announced this week the closing of two $1 billion divestment deals and one involves operations in Oklahoma.
The company sold its Midcoast Operating LP and subsidiaries in a $1.1 billion cash deal involving its U.S. natural gas and natural gas liquids gathering, processing and transportation serving basins in Oklahoma, Louisiana and Texas.
The new owner is an affiliate of Boston-based private equity firm ArcLight Capital Partners LLC but the Midcoast businesses will continue to be headquartered in Houston.
ArcLight said the purchases includes the three large gathering and processing systems in Oklahoma and Texas and a long-haul NGL transmission system from several supply areas to Mont Belvieu. ArcLight now owns nearly 12,000 miles of gas and NGL pipelines, 25 processing plants with more than 2 billion cubic feet a day of capacity and a dozen treating plants, an ethane/propane fractionator as well as several liquid logistics assets such as rail, truck, pipeline injection and storage.
The other sale announced by Enbridge involves $1.34 billion in cash for its 49 percent interest in two German offshore wind projects. The buyer is Canada Pension Plan Investment Board.
Enbridge President and CEO Al Monaco said the additional recent sale of its Canadian gathering and processing assets takes the firm’s total noncore asset sales this year to almost $7.5 billion.
The company announced last fall it intended to divest nearly $7.85 billion in noncore assets while trying to refocus its businesses on pipelines and storage core.