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Midcoast Expands Role in Louisiana Market

Midcoast Expands Role in Louisiana Market

Mid Louisiana Gas Transmission, a subsidiary of Midcoast Energy Resources, announced last week that it purchased all of the stock in the Creole Gas Pipeline in southern Louisiana from El Paso Energy for an undisclosed amount.

The purchase of the 44-mile pipeline, which has a capacity of 115,000 Mcf/d and an average throughput of 50,000 Mcf/d, is part of Midcoast's on-going effort to increase its presence in the Louisiana transportation market. The pipeline, which is located near New Orleans, would serve several large industrial customers, including Entergy Louisiana Inc., Air Products &amp Chemicals, Murphy Oil, Domino Sugar and Mobil Oil's Chalmette refinery.

"The Creole system is a perfect addition to our growing presence in the south Louisiana industrial area," said Midcoast President Dan Tutcher, adding that it was a "natural fit" with the Mid Louisiana Gas system that it acquired in late 1997 and subsequently expanded.

Midcoast acquired the 386-mile Mid Louisiana interstate system, which runs from the Monroe gas field in northern Louisiana to Baton Rouge, as part of a merger transaction with Republic Gas Partners last November, said Duane Herbst, a Midcoast spokesman.

"We're in the process of expanding that system, and we've made several smaller pipeline acquisitions as part of our expansion" in the Louisiana region, he noted. "It's been a big area of focus for us over the last six months or so." Herbst said Midcoast had no plans to "immediately" connect the Creole and Mid Louisiana systems.

Houston-based Midcoast transports, gathers, processes and markets natural gas and other petroleum products through 50 company-owned pipelines spanning 1,500 miles in nine states. Susan Parker

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