CMS-MST Bolsters Canadian Energy Services
CMS Marketing, Services and Trading (CMS-MST) expanded its
Canadian presence yesterday as PremStar Energy, Canada, a CMS-MST
affiliate, acquired ECNG Inc., an independent energy consulting
firm, from El Paso Energy Marketing Canada Inc. Terms were not
disclosed. PremStar worked together with a group of former
executives from ECNG to acquire the firm.
The suburban Toronto-based ECNG provides energy procurement and
management services for over 1,000 industrial, commercial and
institutional clients with more than 10,000 end use locations
across Canada. With offices in Oakville, Montreal and Vancouver,
the company will continue doing business under the ECNG name, as a
subsidiary of PremStar. Larry Sandre, vice president of PremStar,
said the company has procured gas at a rate of 100 MMcf/d in 1999.
"This acquisition fits well with our vision to further
strengthen PremStar's and CMS-MST's Canadian presence and is
especially strategic as we move toward a deregulated electricity
market. ECNG is very well positioned to expand the range of energy
services for its clients," said Max Fantuz, president of PremStar
PremStar provides a portfolio of energy management services,
natural gas supply procurement and storage for a large variety of
customers. This is the first move PremStar has made since CMS-MST
bought 50% of the Chatham, Ontario-based company in February of 1998
(See Daily GPI, Feb 11, 1998). William
W. Schivley, executive vice president of CMS-MST said PremStar is the
vehicle CMS intends to use to expand its Canadian operations.
"Through our partner, PremStar Energy Canada Ltd., CMS-MST will
substantially increase its presence in Canada," Schivley said.
Overall CMS-MST completed 560 energy management projects in 1998.
CMS-MST has annual operating revenue of more than $1.2 billion,
with 7,000 industrial and commercial customers throughout the
eastern and central United States and Canada. It markets annually
about 370 Bcf of natural gas, 7 million MWh of electricity and 1.2
million barrels of natural gas liquids.
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