Encana Corporation has closed the sale of its natural gas processing assets in the Cutbank Ridge area for an aggregate purchase price of approximately C$920 million, subject to customary adjustments.

On December, 7, 2011, Encana announced its agreement to sell the midstream assets to Veresen Inc. The sale includes Encana's 100 percent interest in the Steeprock plant in northeast British Columbia and the Hythe plant in northwest Alberta, which combined provide about 516 million cubic feet per day of natural gas processing capacity, as well as compression and 370 kilometres of associated gathering pipelines.

The Steeprock plant is located approximately 50 kilometres south of Dawson Creek and about 10 kilometres west of the Hythe plant. As part of Encana's midstream divestiture, Encana has entered into a competitive, long-term gathering and processing fee agreement with the new owner on terms that provide cost stability for Encana's ongoing natural gas development in Cutbank Ridge and will help Encana efficiently deliver its production to market.

Tags: EnCana Corporation