Enbridge is looking to cut its 50-percent stake in a German offshore wind project, Bloomberg reported on Thursday, citing sources familiar with the plan that comes as the Canadian energy infrastructure company is targeting to sell US$7.8 billion (C$10 billion) worth of non-core assets.
Enbridge is said to be looking to offload part of its 50-percent interest in the German offshore wind farm Hohe See, currently under construction in the North Sea. Enbridge bought the 50-percent stake in the project in February last year, and said that its total investment would be US$1.33 billion (C$1.7 billion).
Brookfield Asset Management, pension fund Caisse de Depot et Placement du Quebec (CDPQ), and Macquarie Group's Green Investment Group are preparing bids for Enbridge's stake in the German offshore wind project, Bloomberg's sources said.
Enbridge has been seeking to cut debt and streamline businesses after it acquired Spectra Energy last year to create the largest energy infrastructure company in North America with an enterprise value of around US$130 billion (C$166 billion).
In November 2017, Enbridge said that it would be rationalizing its asset mix to a pure regulated pipeline and utility business model with three core businesses-Liquids Pipelines and Terminals, Gas Transmission and Storage, and Gas Utilities. The company has identified US$7.8 billion (C$10 billion) of non-core assets that it would sell and plans to sell or monetize a minimum of US$2.34 billion (C$3 billion) of those in 2018.
Related: Trade War Looms Over Oil Markets
"In 2018, at least $3 billion of certain unregulated gas midstream and onshore renewables businesses will be sold or monetized," Al Monaco, President and CEO, said back then.
Earlier this week, Bloomberg reported, quoting people familiar with the issue, that Enbridge had hired Royal Bank of Canada to help it to sell a package of gas gathering and processing assets in British Columbia and Alberta that was owned by Spectra Energy and that could fetch more than US$1.56 billion (C$2 billion) in proceeds.
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com:
Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. More