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Encana Divests Stake In Alberta LNG Plant To Ferus

|Includes:Encana Corporation (ECA)

Encana has executed an agreement with Ferus Natural Gas Fuels to divest its 50% stake in the 190,000-litre/d production LNG plant located in Elmworth, Alberta.

Phase-1 of the Elmworth LNG facility will be operational in May-2014. The facility was constructed as a 50/50 JV partnership between Ferus and Encana.

Ferus states that the LNG plant is strategically located in close proximity to the active Alberta-British Columbia Deep Basin oil and gas region. The plant will produce LNG fuel for use in drilling rigs, pressure pumping services, and heavy-duty trucks.

Upon the completion of the transaction, Ferus will hold 100% operated interest in the LNG plant.

In Apr-2014, Stabilis Energy signed an agreement to acquire substantially all of the US based assets of Encana's LNG distribution unit.

In Mar-2014, Encana agreed to sell its natural gas properties in the Jonah field to TPG Capital for $1.8 million.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stocks: ECA