Canadian Natural Resources Ltd (CNRL) has agreed to sell 75% of its interest in its Seiu Lake natural gas processing plant, according to the Canadian Press, which cited the country’s Competition Bureau. The sale has been agreed to address competition concerns related to CNRL’s acquisition of SLB’s interest in the Palliser Block joint venture.

SLB announced in October 2024 that it had agreed to sell its interest in the block, which is located in Alberta. The sale consists of SLB’s 87.5% stake in 16 gas-processing plants in southeastern Alberta and also includes oil and gas wells, surface facilities, a pipeline network and certain oil and gas development rights. The transaction was originally expected to close late in the fourth quarter of 2024. However, the Competition Bureau raised concerns that the deal would reduce competition for gas-processing services in the region. Specifically, concerns were raised that the acquisition would significantly increase in market concentration around three gas processing plants, Dow Jones Newswires reported. The three plants at the centre of the concerns were Seiu Lake, Wintering Hills and Wayne Dalum, all of which are located in an area roughly 130 km east of Calgary. The concern was that concentration in CNRL’s hands could lead to higher prices and fewer options for gas producers in the region.

In order to address this, CNRL is reported to have reached a consent agreement with the bureau, according to which it will sell a majority interest in the Seiu Lake plant to North 40 Resources.

The financial terms of the agreement were not immediately available, the Canadian Press reported. However, it added that North 40 would be the operator of the plant, while CNRL would hold a non-operating 25% stake in the facility.

Dow Jones cited the Competition Bureau as saying it was satisfied that CNRL’s sale would preserve competition in the area around the Seiu Lake plant and ensure that producers in the area would continue to have more than one option for natural gas processing.