Encana gets $586 million for NGL assets

CALGARY, Alberta, Oct. 27 (UPI) -- Canada's Provident Energy Trust will pay $586 million to buy the natural gas liquids business of EnCana Corp.

EnCana will retain a 10-percent interest in the Empress Plant but has a put option to sell that interest to Provident for about $12.6 million. EnCana has also agreed to provide up to $63 million in support, via a gas sales contract, in the event that the commodity price relationship impacting the NGL business drops below historic averages over the next two-year period.

EnCana has the opportunity to recover any support drawn over that 2-year period plus one additional year.