CALGARY - A division of Atco Ltd. (TSX:ACO.X) has sold its Watelet gas plant southwest in central Alberta to Direct Energy Services.
Atco Energy Solutions transaction did not disclose terms of the sale, which was effective Dec. 1.
The Watelet plant, southwest of Leduc, and the associated gathering system has been operated by Atco since acquiring it in 1998 with Direct Energy production flowing through the plant since 2009.
"The decision to sell the Watelet gas plant will allow Atco Energy Solutions to focus on better serving Western Canada's energy sector by optimizing the utilization at our existing facilities," said managing director and president Arnold MacBurnie.
"It also allows us to concentrate our efforts on growth opportunities in the marketplace."
Direct Energy has an active oil exploration and production program in the vicinity, so the Watelet facility is ideally situated to support their initiatives in addition to providing custom processing services to other producers in the Watelet, Thorsby, Leduc-Woodbend and Wizard Lake fields of central Alberta, Atco said.
Atco Energy Solutions is part of the Atco Group, which has more than 8,800 employees and assets of about $14 billion. Its businesses include utilities, power generation, natural gas gathering, processing, storage and liquids extraction, manufacturing, logistics and noise abatement.