Enbridge selling Midcoast business to AL Midcoast for $1.44 billion

CALGARY — Enbridge Inc. has signed a deal to sell Midcoast Operating LP in the United States for about $1.44 billion.

The Calgary-based company says Midcoast, which has natural gas and natural gas liquids gathering, processing, transportation and marketing businesses in Texas, Oklahoma and Louisiana, is being bought by AL Midcoast Holdings LLC for US$1.12 billion.

Enbridge chief executive Al Monaco says the sale of Midcoast is an important step in the company’s shift to a pure regulated pipeline and utility model.

The sale was the second big deal announced by Enbridge today. In a separate agreement, the company is selling a stake in a group of its renewable power assets to the Canada Pension Plan Investment Board for $1.75 billion.

Enbridge has set a goal of selling $3 billion in non-core assets this year.

The transaction is expected to close in the third quarter, subject to regulatory approvals and customary closing conditions.

Companies in this story: (TSX:ENB)