BP sells Canadian natural gas unit for $1.6B
BP PLC has sold its Canadian natural gas business to a company called Plains Midstream for $1.67 billion.
The British energy multinational's Canadian unit is involved in the extraction, storage and distribution of liquefied natural gas across Canada and the midwestern United States. In total, the division oversees 4,000 kilometres of gas pipelines, 21 million barrels of storage capacity and leases on rail cars to move petroleum products.
Plains, a division of NYSE-listed Plains All American Pipeline, LP, will assume 450 employees in the all-cash deal.
BP is in the midst of an aggressive $45 billion asset sale to drum up funds to cover costs associated with the devastating Gulf of Mexico oil spill of 2010.
The deal is expected to close some time in 2012.