Energy Transfer To Sell Stake In Energy Transfer Canada For C$1.6 Bln

(RTTNews) - Energy Transfer LP (ETP), said on Tuesday that it has inked a definitive deal to sell its 51 percent interest in Energy Transfer Canada ULC, to a joint venture which includes participation by Pembina Pipeline Corporation and global infrastructure funds managed by KKR, for around C$1.6 billion, including debt and preferred equity.

The transaction, which is expected to close by the third quarter of 2022, will fetch approximately C$340 million to Energy Transfer. "The agreement allows Energy Transfer to divest its high-quality Canadian assets at an attractive valuation to further deleverage its balance sheet and redeploy capital within its U.S. footprint," Energy Transfer said in a statement.

Calgary-based Energy Transfer Canada is a licensed gas processor. Its assets include six natural gas processing plants that have a combined operating capacity of 1.29 billion cubic feet per day and a network of approximately 848 miles of natural gas gathering and transportation infrastructure in the Western Canadian Sedimentary Basin.