TransCanada acquires BP interest in Crossfield gas storage facility

TransCanada Corporation (TRP) announced that it has entered into an agreement to acquire BP's (BP) 40% interest in the assets of the Crossfield Gas Storage facility. In addition, TransCanada will acquire BP's interest in CrossAlta Gas Storage & Services, an affiliated marketing joint venture between the two companies. This $210M transaction will give TransCanada 100% ownership in the facility located in Crossfield, Alberta, about 50km north of the city of Calgary. This acquisition adds an additional 27B cubic feet of natural gas storage capacity to TransCanada's existing portfolio in Alberta. TransCanada has operated the Crossfield Gas Storage facility since 2011. 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 expected to occur by 1Q13.