Fortis, through an indirect wholly owned subsidiary, has entered into a definitive share purchase and sale agreement with Chevron Canada Properties Ltd to acquire its share of the Aitken Creek Gas Storage Facility (Aitken Creek) for approximately US$266 million. The agreement is subject to customary closing conditions and adjustments.
"Fortis is focused on growing its natural gas investments in British Columbia," commented Mr. Barry Perry, President and CEO of Fortis. "This acquisition is the right fit for us both operationally and strategically: we currently lease approximately one-third of the available storage capacity and this asset positions us well to further expand our gas infrastructure in the Province."
Aitken Creek is the largest gas storage facility in British Columbia. It has a total working gas capacity of 77 billion ft3.
The facility is the only underground gas storage facility in BC offering storage to third parties and it is also uniquely positioned to benefit from the completion of proposed LNG export projects, where it could provide balancing services to suppliers and to LNG exporters.
"Fortis has a clear path towards exceeding US$20 billion in rate base by 2020. Beyond this rate base growth, we are pursuing additional investment opportunities in existing and new franchise areas that will continue to diversify our asset base and grow our business. The acquisition of Aitken Creek is a good example of this strategy in action," added Mr. Perry.
The purchase is subject to regulatory approval, principally the British Columbia Utilities Commission. Closing is expected to occur in 1H16.
Edited from press release by Angharad Lock
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/07122015/fortis-acquires-share-of-the-aitken-creek-gas-storage-facility-494/