As per the transaction, Plains Midstream will pay BP a total of $1.67bn in cash, subject to customary adjustments, for the business.
BP’s Canadian NGLs business owns, operates and has contractual rights to assets involved in the extraction, gathering, fractionation, storage, distribution and wholesale marketing of NGLs across Canada and in the Midwest United States.
Assets include NGL extraction plants; pipeline gathering systems; fractionation plants; and storage and specification product distribution facilities.
The NGL business owns or has rights to approximately 4,000km of pipeline systems; 21 million barrels of storage capacity; 232,000 barrels per day of fractionation capacity; and NGLs produced from 8.3 billion cubic feet per day of gas processing capacity.
Completion of the transaction is subject to closing conditions including the receipt of all necessary governmental and regulatory approvals.
The transaction is expected to be completed by the end of the first half of 2012.
Credit Suisse acted as the sole financial advisor to BP for this transaction.
Plains Midstream is a wholly-owned subsidiary of Plains All American Pipeline.
