Iberdrola Sells its Gas Storage Business in Canada to ATCO Group

Source Press Release
Company ATCO GroupIberdrola S.A. 
Tags Asset Deals, Deals, LNG & Gas Storage/Processing
Date December 03, 2021

  • The transaction is part of the non-strategic asset rotation envisaged in Iberdrola's 2020-2025 Strategic Plan.
  • The sale is unconditional and effective upon signature.

Iberdrola has taken another positive step foward in its decarbonization strategy. The company, through its subsidiary Scottish Power Overseas Limited, has closed the sale of Alberta Hub Gas Storage - owned 57% by Iberdrola Canada Energy Services - to the Canadian group ATCO.

Iberdrola Canada Energy Services operates the Alberta Hub Gas Storage natural gas storage facility in the province of Alberta, Canada. The asset has a total storage capacity of approximately 43 Bcf (24 Bcf net according to Iberdrola's shareholding).

With this operation, Iberdrola continues its plan to divest non-strategic assets, in line with its climate action, energy transition and exit from the gas business initiated in 2001.

The divestment is a further step in Iberdrola Group's commitment to emissions reduction, which anticipated the industry's move through a strategy kicked off in 2001:

  • At the end of 2001, the company put its stake in Repsol up for sale.
  • In 2009, the company closed its regasification business and sold its stakes in the Sagunto and BBG regasification plants.
  • In January 2010, Iberdrola sold its 15.68% stake in the Irish company Petroceltic, dedicated to the exploration and production of hydrocarbons.
  • In 2011, the company sold the Seneca Lake gas storage facility in the state of New York and 2 associated gas pipelines.
  • In 2013, the company sold its 20% stake in Medgaz, the company which owns and operates the gas pipeline linking Algeria to Spain.
  • In 2014, a 25% stake in the Bahia Bizkaia Electricidad (BBE) combined cycle plant was sold.
  • In 2016 the company sold its 4.9% stake in Iroquois Gas Transmission System in the United States.
  • Early 2018 saw the sale of the gas storage and gas trading businesses in the US.
  • At the end of 2018, the exit of the thermal generation business in the UK was completed, making Scottish Power the country's first 100% green utility, focusing on renewable generation, networks and customers.
  • In 2019, the company sold its portfolio of long-term LNG supply contracts in a first-of-its-kind transaction.

Thus, the company practically closes its gas storage business, as it would only have one residual asset left in the United Kingdom, 4.1-Bcf Hatfield Gas Storage. With the divestment of the gas storage business in Canada, Iberdrola takes another step forward in its commitment to clean energy and decarbonisation of the economy.

Source: EvaluateEnergy® ©2022 EvaluateEnergy Ltd