SaskEnergy selling off gas processing plants for $31M
SaskEnergy is selling off the remainder of its stake in two gas processing plants for $31 million, saying the work the plants do is not the Crown's area of expertise.
The sale of the Coleville gas plant and the remainder of the Kisbey gas plant to Alberta-based Steel Reef Infrastructure Corp. is expected to close October 1.
"When we started the Coleville plant in 1959, there really wasn't a lot of gas processing available in Saskatchewan. Now, there's gas processing plants everywhere," said Dave Burdeniuk, director of government and media relations for SaskEnergy.
Steel Reef already owned 50 per cent of the Kisbey plant and was responsible for its operation. The Coleville plant was owned and operated by SaskEnergy.
There are more than 30 gas processing plants in Saskatchewan. The plants essentially clean natural gas after it has been extracted, which Burdeniuk referred to as a "mid-stream" process.
"We're a downstream company. That's our expertise. We know how to ship gas in pipelines, we know how to deliver it to homes and businesses," he said.
"That's our focus."
The move has drawn the attention of the Saskatchewan NDP.
"We definitely want to see this money being re-invested for our Crown corporations," Energy Critic Nicole Rancourt said Thursday.
Bronwyn Eyre, the minister responsible for SaskEnergy, is expected to speak on the matter Thursday afternoon.
Eight people are employed at Coleville and they will not lose their jobs, Burdeniuk said. They will still be represented by their union but under a new bargaining agreement, he added.
The Kisbey plant is located near Stoughton while the Coleville plant is near Kindersley.
