Enbridge Inks Pact With Fortis To Acquire Aitken Creek Natural Gas Storage For C$400M

Enbridge Inc ENB inked a pact with Fortis Inc. FTS to acquire Aitken Creek natural gas storage facility in British Columbia for C$400 million.
Under the deal, Enbridge will acquire 93.8% interest in Aitken Creek Gas Storage facility and a 100% interest in Aitken Creek North Gas Storage facility - collectively called Aitken Creek Storage.
Aitken Creek Storage is an underground reservoir in the heart of Canada's prolific Montney production region. It has a total working gas capacity of 77 billion cubic feet.
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Aitken Creek Storage is the only storage facility that connects to all three major long-haul natural gas transportation lines in Western Canada, including Enbridge's Westcoast Pipeline and Alliance Pipeline.
"Enbridge is pleased to acquire Aitken Creek Storage, a well-located and connected facility that will enable us to continue to meet regional energy needs as well as support increasing demand for west coast LNG exports," said Cynthia Hansen, Enbridge Executive Vice President and President, Gas Transmission and Midstream.
The deal is expected to strengthen Fortis' balance sheet and provide additional funding flexibility to support the regulated utility growth strategy.
The transaction is expected to close later in 2023.
Price Action: ENB shares are trading lower by 0.33% at $39.63, while FTS shares are trading higher by 0.42% to $44.10 on the last check Monday.