Energy Transfer agreed to sell its 51 percent interest in Energy Transfer Canada to a joint venture, which includes participation by Pembina Pipeline Corp. and global infrastructure funds managed by KKR at a valuation of about $1.3 billion (CA$1.6 billion), including debt and preferred equity.
The sale is expected to result in cash proceeds to Energy Transfer of about $270 million (CA$340 million). The transaction is expected to close by the third quarter of 2022.
Energy Transfer Canada, based in Calgary, is one of Alberta’s largest licensed gas processors. Its assets include six natural gas processing plants that have a combined operating capacity of about 1.3 billion cu. ft. per day and a network of about 848 miles of natural gas gathering and transportation infrastructure in the Western Canadian Sedimentary Basin.
Energy Transfer says the agreement allows it to divest its Canadian assets to further deleverage its balance sheet and redeploy capital within its U.S. footprint.
Strong fourth quarter 2021
Energy Transfer says its natural gas liquids (NGL) business had record transportation and fractionation volumes in the fourth quarter of 2021.
For the three months ending Dec. 31, 2021, compared to the same year-ago period, NGL transportation volumes increased primarily due to the initiation of service on its propane and ethane export pipelines into its Nederland Terminal in the fourth quarter of 2020, higher volumes from the Permian and Eagle Ford regions and higher volumes on its Mariner East pipeline system, according to the company.
In February 2022, construction of the final phase of the Mariner East project was completed and commissioning in progress. Energy Transfer’s Mariner East franchise will now include multiple pipelines across Pennsylvania connecting the Marcellus/Utica basins to markets throughout the state and the broader region, including its Marcus Hook terminal on the East Coast.
Energy Transfer owns and operates one of the largest portfolios of energy assets in North America, with a strategic footprint in all of the major U.S. production basins.
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