Encana Corp. and the Cutbank Ridge Partnership (CRP) sold gas gathering and compression assets to Veresen Midstream Ltd. Partnership for about C$461 million.
Under the terms of the agreement, Veresen Midstream will provide gathering and compression services to Encana and CRP under separate fee-for-service arrangements within the Montney resource play. Veresen Midstream agreed to C$5 billion of new midstream expansion to support development within the area of dedication. Encana will continue to operate the related facilities and lead future infrastructure construction for Veresen Midstream, which will oversee all commercial and other ownership activities.
The transaction includes approximately 500 km of pipeline and 675 MMcf/d of compression in the Dawson Creek region.
(Image provided by Encana.)