The sale of the assets enables Cresent Point to monetise nine natural gas gathering and processing facilities and two gas sales pipelines in Saskatchewan Image: The assets do not consist of any oil-related infrastructure. Photo courtesy of John Nyberg/Freeimages. Canada-based oil and gas company Crescent Point Energy has announced the sale of Saskatchewan gas infrastructure assets to Steel Reef Infrastructure for $500m.The sale of the assets enables Cresent Point to monetise nine natural gas gathering and processing facilities and two gas sales pipelines, which have a combined throughput capacity of over 90M cf/day, currently in operation in the province. The assets do not consist of any oil-related infrastructure.The company said it will enter into long-term take-or-pay commitments with Steel Reef in exchange for Steel Reef granting processing rights at the facilities to Crescent Point.Crescent Point president and CEO Craig Bryksa said: “Through the sale of these gas infrastructure assets, we will unlock value for our shareholders and further strengthen our financial position. We have now entered into agreements to sell, or have sold, in aggregate approximately $1.45 billion of assets in 2019.“This sale is also aligned with our strategy, as it allows us to further focus on our core competencies to strengthen our corporate returns.”The anticipated yearly cash flow to the Steel Reef is estimated at nearly $47m, excluding cash flow from third parties.Under the terms of the agreement, Steel Reef has committed to fund the forthcoming 12MMcf/d expansion of one of the gas processing facilities, reducing the capital requirements for Crescent Point.Steel Reef’s cost to build the facility expansion is estimated to be nearly $30mThe midstream company’s expenditure to build the expansion project is estimated to be roughly $30m, which will be in addition to the purchase price of $500m.The expansion of the facility is likely to commence in 2020 and be finished within nearly 12 to 18 months following closing of the asset sale.For the transaction, RBC Capital Markets served as an exclusive financial advisor to Crescent Point, while GMP FirstEnergy served as a strategic advisor.The deal is expected to be completed in the first quarter of 2020, subject to customary closing conditions and regulatory approvals.