LONDON (AP) — BP PLC said Thursday it is selling its Canadian natural gas liquids business to Plains Midstream Canada, a subsidiary of Plains All American Pipeline, for $1.67 billion.
The business is involved in extracting, processing and transporting natural gas liquids across Canada and in the Great Lakes region of the United States. It includes 2,600 miles of pipelines, storage facilities, processing plants, and long-term leases on rail cars that move petroleum products. About 450 BP employees will now work for Plains as part of the agreement.
The deal is expected to close in the second quarter of 2012.
BP made the sale as it works to shed $45 billion in assets, mainly to meet the costs arising from the oil well blowout in the Gulf of Mexico last year.
Separately, Plains on Thursday announced four more recent acquisitions worth an additional $620 million.
— 120 miles of South Texas oil pipelines from Velocity Midstream Partners. The pipeline, which is under construction, is expected to be capable of transporting 150,000 barrels per day.
— A trucking operation in Canada.
— A petroleum storage and distribution terminal in Yorktown, Va., from Western Refining Inc. Plains All American plans to upgrade the facility so that it can store oil, refined products, propane, butane, ethanol and other bio-diesel fuels.
— An 82-mile oil pipeline in New Mexico from Western Refining. The pipeline can transport up to 100,000 barrels of oil per day.
Greg Armstrong, Plains All American's Chairman and CEO, said the company will invest an additional $100 million to $150 million in those additional assets over the next two years.
Because of the expansion, Plains said it expects company distributions to rise by 8 to 9 percent in 2012. Its current annual distribution is $3.98 per unit.