Canada’s AltaGas monetises non-core US midstream assets
Canadian midstream infrastructure company AltaGas said April 23 it had monetised its non-core US transportation and storage assets with the sale of WGL Midstream to an entity owned by Six One Global Commodities and Vega Energy Partners for a cash consideration of C$344mn (US$275mn).
AltaGas acquired WGL Midstream in 2018 as part of its C$8.4bn acquisition of WGL Holdings, which also included Washington Gas, WGL Energy and Hampshire Gas.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
The WGL Midstream sale includes a number of natural gas transportation and storage contracts, including about 31bn ft3 of leased and managed storage capacity. Not included are AltaGas’ 10% equity stake in the Mountain Valley Pipeline and its 5.1% interest in the Mountain Valley Pipeline Southgate expansion.
Proceeds from the sale will be used as part of AltaGas’ planned C$485mn de-leveraging programme that will refocus the company on its core midstream and utilities businesses. WGL Midstream had been a small part of AltaGas’ US utilities operations, contributing about US$21.2mn of normalised Ebitda in 2020 and US$16.2mn of average annualised Ebitda between 2016 and 2020.
Vega Energy Partners, which had managed the WGL Midstream assets on behalf of AltaGas, was acquired by Six One Global in a related transaction.
“This is a transformational opportunity for 61C Global,” CEO Ben Sutton said. “These acquisitions will accelerate our growth in the natural gas market, add significant earnings potential, and provide a solid platform for us to link our existing domestic and international LNG businesses.”