Canada’s Enbridge is selling a bevy of gas processing assets in Texas and neighboring state for more than $1 billion to a private equity firm focused on oil and gas assets and more.
Enbridge, the largest pipeline business in North America, is selling its Houston-based Midcoast Operating business for $1.1 billion to the Boston-based firm ArcLight Capital Partners.
Th deal includes the sale of natural gas and natural gas liquids gathering, processing, pipeline and marketing businesses in Texas, Oklahoma and Louisiana, including a hub just east of Houston in Mont Belvieu.
ArcLight said the Midcoast business will continue to be based out of Houston.
Enbridge also is selling a bevy of renewable energy assets in North America to the Canada Pension Plan Investment Board for close to $1.5 billion.
Enbridge is seeking to focus more exclusively on its pipeline and utility businesses, selling off much of its ancillary units and assets.
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“Together, these transactions support our strategy to move towards a pure pipeline and utility business model and provide the company with significant additional financing flexibility as we fund our industry leading secured growth program,” said Enbridge CEO Al Monaco.
The ArcLight sale includes 11,900 miles of gas and NGL pipelines, 25 processing plants, 12 treatment plants and more.
ArcLight said it has hired Rob Bond to lead its new Midcoast business as well as other executives that Bond worked with at his senior leadership team at PennTex Midstream Partners.
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