TransCanada to buy BP's stake in Crossfield Gas Storage facility for C$210 mn
21 Nov 2012
TransCanada, the country's largest pipeline company, today said that it will buy British oil giant BP Plc's 40-per cent stake in the Crossfield Gas Storage facility for C$210 million ($210 million).
Calgary, Alberta-based TransCanada, one of North America's largest providers of gas storage and related services with approximately 355 billion cubic feet of storage capacity, said that the acquistion would add 27 billion cubic feet of natural-gas storage.
TransCanada will acquire BP's interest in CrossAlta Gas Storage & Services Ltd, an affiliated marketing joint venture between the two companies.
The transaction will give TransCanada 100-per cent ownership in the facility located in Crossfield, Alberta, about 50kms north of the City of Calgary. TransCanada has operated the Crossfield Gas Storage facility since 2011.
As part of the transaction, TransCanada will also 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.
''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 of TransCanada.