EnCana announced today that it will divest its natural gas storage business,
EnCana’s planned divestiture is consistent with the company’s other recent divestitures, such as the sale of UK North Sea assets, Gulf of Mexico interests, Western Canadian conventional producing assets, plus the planned sale of the company’s Ecuador interests and its natural gas liquids business.
EnCana’s natural gas storage assets are said to be located in key gas producing and consuming regions and are linked to intercontinental pipelines. EnCana Gas Storage has approximately 174 billion cubic feet of working gas capacity at five facilities in
The AECO Hub in
EnCana will retain ownership of its Hythe storage facility, which has 10 billion cubic feet of storage capacity, and may enter into other commercial storage arrangements with the new owner of the divested assets. EnCana will soon commence a formal divestiture process that is expected to be completed by early in 2006.