Fortis Inc. has announced that it has entered into a share purchase and sale agreement through a wholly-owned subsidiary with Chevron Canada Properties Ltd. In the agreement, Fortis will acquire its share of the Aitken Creek gas storage facility – subject to closing conditions and adjustments – for approximately US$266 million.
Aitken Creek has a total gas capacity of 77 BCF and is the largest gas storage facility in British Columbia (B.C.). It is the only gas storage facility in B.C. that is located underground and can offer storage to third parties. Furthermore, it is able to benefit from the completion of proposed LNG export projects, as it is able to provide balancing services to both LNG exporters and suppliers.
The President and CEO of Fortis, Barry Perry, said: “Fortis is focused on growing its natural gas investments in B.C.
“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.
“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.”
Edited from press release by David Rowlands
Read the article online at: https://www.lngindustry.com/liquefaction/04122015/fortis-acquires-share-of-aitken-creek-gas-storage-facility-1723/