BP is set to sell its natural gas liquids (NGL) operations to a Canadian operator.
The deal, announced by BP, is worth more than $1.6bn and will see BP Canadian NGL hand over its entire business to Plains Midstream Canada ULC including some 4,000km of pipeline systems.
The Plains All America Pipeline subsidiary will also take on operating and contractual rights for extraction, storage, distribution and marketing of the NGL products throughout Canada and the American Midwest. Assets include extraction and fractionation plants, storage, production and distribution facilities, as well as the pipelines.
Production of the NGLs is from 8.3bn cubic feet of gas processing capacity per day, with a potential 232,000b/d fractioning capacity and storage for 21m barrels. The 450 staff currently working for BP will transfer to Plains Midstream once the deal is completed towards the middle of 2012.