A partnership between Sempra Energy International and Public
Service Enterprise Group (PSEG) won approval from the board of
directors for Chilquinta S.A. to buy Chilquinta Energia, for $830
million, Chilquinta announced Tuesday. Chilquinta Energia is
Chile's third-largest electricity supplier, serving 405,000
customers. Along with Chilean electricity supply, the Sempra - PSEG
partnership would acquire Energas, a Chilean natural gas
distribution company. Energas began service in May of 1998 and
plans to reach 50,000 customers by 2003. Both Sempra and PSEG said
the deal will progress their Latin America growth strategies and
look forward to entering into the Chilean electric market, which
has grown 8% each year since 1991, compared to 1%-2% in the U.S.
The deal is contingent on the buyers' review and approval of
schedules for the definitive stock purchase agreement. Both Sempra
and PSEG expect the purchase to be accretive in 1999. The $830
million would net 90% of Chilquinta Energia's stock for the
partnership. Upon final acquisition, Sempra and PSEG will be able
to make a tender offer to acquire the remaining 10 percent of
Chilquinta Energia shares from other shareholders.
The government of Atlantic County, NJ, home of Atlantic City,
NJ, announced Tuesday it awarded South Jersey Energy Co., a South
Jersey Industries subsidiary, a two-year natural gas supply
contract. South Jersey will supply the county's office buildings,
schools, municipal buildings and housing authorities with gas at
rates that will produce 20% savings over traditional utility-based
rates. The contract, valued at $1.9 million, takes effect May, 1.
South Jersey Energy did not release how much gas the county uses
each year but it did say the contract covers one of the LDC's
largest and fastest growing service areas.
Beating the estimated production date by four months, Shell
Exploration announced the first well of the Ursa project is now
producing 13,000 Boe/d and 20 MMcf/d. Once all 14 wells are
operational, Shell said initial production could reach 80 MMcf/d.
©Copyright 1999 Intelligence Press Inc. All rights reserved. The
preceding news report may not be republished or redistributed, in
whole or in part, in any form, without prior written consent of
Intelligence Press, Inc.