Nova Scotia Journal

Saturday, December 2, 2023

Iberdrola sells its natural gas storage business functions in Canada

natural gas storage business functions in Canada

Key Takeaways:

  • ATCO purchased the company’s stake in the 43Bcf Alberta Hub Gas Storage facility in Alberta, Canada.
  • As part of its decarbonization strategy, Iberdrola has divested its natural gas storage business in Canada.

Through its subsidiary Scottish Power Overseas, the company sold its stake in Alberta Hub Gas Storage to the Canadian conglomerate ATCO. The sale went into effect immediately after the contract was signed.

Iberdrola Canada Energy Services owns 57 percent of the natural gas storage facility, which measures 43 billion cubic feet and is located in the Canadian province of Alberta.

Iberdrola’s previously declared plan to exit the gas storage business is being carried out with this divestment. As an end, the company now owns only one asset, the 4.1-Bcf Hatfield Gas Storage facility in the United Kingdom.

Iberdrola said in a statement, “With the divestment of the gas storage business in Canada, Iberdrola takes the second step forward in its commitment to clean energy and economic decarbonization.”

Iberdrola gas storage business; Image from Calgary Herald

Since 2001, when the company sold its stake in Repsol, Iberdrola has been working to divest non-strategic assets and reduce emissions.

The company sell its stakes in the Sagunto BBG regasification plants in 2009, effectively exiting the regasification business. A year later, the Spanish company sold its 15.68 percent stake in Petroceltic, an Irish oil, and gas company.

In 2011, Iberdrola sold the Seneca Lake gas storage facility and two related gas pipelines in the United States. In 2013, the company also sold a 20% stake in the Algeria-Spain gas pipeline operator Medgaz.

Source: offshore-technology News

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