BP Sells Interest in Crossfield Gas Storage to TransCanada

TransCanada Corporation announced that it has entered into an agreement to acquire BP’s 40 per cent interest in the assets of the Crossfield Gas Storage facility.

In addition, TransCanada will acquire BP’s interest in CrossAlta Gas Storage & Services Ltd., an affiliated marketing joint venture between the two companies.

This $210 million transaction will give TransCanada 100 per cent ownership in the facility located in Crossfield, Alberta, about 50 kilometres north of the City of Calgary. This acquisition adds an additional 27 billion cubic feet of natural gas storage capacity to TransCanada’s existing portfolio in Alberta. TransCanada has operated the Crossfield Gas Storage facility since 2011.

“The addition of the Crossfield Gas Storage facility into our existing portfolio will increase our ability to offer unique services to our customers in Alberta, and provide another organic growth platform for our storage business,” said Russ Girling, president and chief executive officer, TransCanada. “This latest energy infrastructure acquisition enhances TransCanada’s ability to reliably deliver an essential balancing service to the gas markets in western Canada.”

As part of the transaction, TransCanada will acquire BP’s base gas in the facility, all of BP’s mineral interests in the Crossfield area including BP’s ownership interest in the Elkton production unit and related surface land. BP will maintain a transactional relationship with TransCanada as a storage customer going forward.

Closing of the transaction is subject to certain conditions being satisfied and is expected to occur by the first quarter of 2013.

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LNG World News Staff, November 21, 2012; Image: BP