The G&P Business includes 19 natural gas processing plants and liquids handling facilities, with a total operating capacity of 3.3 Bcf/d and 3,550 km of natural gas gathering pipelines.
Separate sale agreements have been entered into for those facilities currently governed by provincial regulations (Alberta and B.C.), and those governed by federal National Energy Board regulations.
The transaction involving the sale of the provincially regulated facilities is expected to close in 2018, while the transaction involving the sale of the federally regulated facilities is anticipated to close in mid-2019.
Proceeds from these transactions provide significant additional financing flexibility going forward as the company continues to execute on its current portfolio of secured growth projects. The company's outlook for DCF/share through 2020 and its target credit metrics remain unchanged as a result of these asset sales.
Enbridge will continue to hold its highly strategic long haul regulated natural gas transmission assets which include the Westcoast transmission system in British Columbia and the Alliance pipeline that carries natural gas from western Canada to the Chicago market.
Brookfield intends to maintain the Canadian G&P workforce and anticipates that they will remain with the G&P business upon transaction close.
CEO Al Monaco said, "When combined with asset monetizations announced in May, the sale of our Canadian G&P Business significantly advances our strategic priority of moving to a pure play regulated pipeline and utility business model. It also demonstrates our focus on prudent capital allocation and ensuring the continued strength of our balance sheet and funding flexibility. With a total of roughly $7.5 billion in asset monetizations announced in 2018, we have more than doubled our initial target of $3 billion."