BP agrees to sell Canadian NGL business to Plains Midstream

London-based oil and gas company BP has agreed to sell its Canadian natural gas liquids (NGL) business to Plains Midstream Canada, a wholly-owned subsidiary of Plains All American Pipeline.

Plains Midstream will pay BP a total of $1.67bn (£1.1bn) in cash, subject to customary adjustments, for the business.

BP’s Canadian NGL 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 US.

The transaction, for which Credit Suisse acted as BP’s financial adviser, is expected to be completed by the end of the first half of 2012.