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TransCanada Corporation (TSX:TRP) (NYSE:TRP) (TransCanada) announced today that it has entered into an agreement to acquire BP's 40 per cent interest in the assets of the Crossfield Gas Storage facility. In addition, TransCanada will acquire BP's interest in CrossAlta Gas Storage & Services Ltd., an affiliated marketing joint venture between the two companies.
This $210 million transaction will give TransCanada 100 per cent ownership in the facility located in Crossfield, Alberta, about 50 kilometres north of the City of Calgary. This acquisition adds an additional 27 billion cubic feet of natural gas storage capacity to TransCanada's existing portfolio in Alberta. TransCanada has operated the Crossfield Gas Storage facility since 2011.
"The addition of the Crossfield Gas Storage facility into our existing portfolio will increase our ability to offer unique services to our customers in Alberta, and provide another organic growth platform for our storage business," said Russ Girling, president and chief executive officer, TransCanada. "This latest energy infrastructure acquisition enhances TransCanada's ability to reliably deliver an essential balancing service to the gas markets in western Canada."
As part of the transaction, TransCanada will acquire BP's base gas in the facility, all of BP's mineral interests in the Crossfield area including BP's ownership interest in the Elkton production unit and related surface land. BP will maintain a transactional relationship with TransCanada as a storage customer going forward.
Closing of the transaction is subject to certain conditions being satisfied and is expected to occur by the first quarter of 2013.
With more than 60 years' experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas and oil pipelines, power generation and gas storage facilities. TransCanada operates a network of natural gas pipelines that extends more than 68,500 kilometres (42,500 miles), tapping into virtually all major gas supply basins in North America. TransCanada is one of the continent's largest providers of gas storage and related services with approximately 380 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns or has interests in over 10,900 megawatts of power generation in Canada and the United States. TransCanada is developing one of North America's largest oil delivery systems. TransCanada's common shares trade on the Toronto and New York stock exchanges under the symbol TRP. For more information visit: http://www.transcanada.com/ or check us out on Twitter @TransCanada.
FORWARD LOOKING INFORMATION
This publication contains certain information that is forward-looking and is subject to important risks and uncertainties (such statements are usually accompanied by words such as "anticipate", "expect", "would" or other similar words). Forward-looking statements in this document are intended to provide TransCanada security holders and potential investors with information regarding TransCanada and its subsidiaries, including management's assessment of TransCanada's and its subsidiaries' future financial and operation plans and outlook. All forward-looking statements reflect TransCanada's beliefs and assumptions based on information available at the time the statements were made. Readers are cautioned not to place undue reliance on this forward-looking information. TransCanada undertakes no obligation to update or revise any forward-looking information except as required by law. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to differ from the anticipated results, refer to TransCanada's Management's Discussion and Analysis filed February 15, 2012 under TransCanada's profile on SEDAR at http://www.sedar.com/ and other reports filed by TransCanada with Canadian securities regulators and with the U.S. Securities and Exchange Commission.
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