TransCanada Buys Half of PanAlberta Resources
TransCanada Midstream (TCM), a business unit of TransCanada
PipeLines Ltd., bought Alberta Energy Co.'s (AEC) outstanding
shares (49.995%) in PanAlberta Resources Inc. (PARI) for $35
million plus about $7 million in assumed debt. PARI owns 50% of the
Empress II straddle plant and holds gas liquids extraction rights
with respect to gas volumes of Pan-Alberta Gas Ltd.
"The purchase of the outstanding shares in PARI consolidates and
strengthens our position in the Empress Natural Gas Liquids (NGLs)
complex," said Randy Findlay, TransCanada senior vice president. At
the Empress site TCM currently has 2.5 BCF/d of processing capacity
with another 500 MMcf/d of capacity under construction.
TransCanada spokesman Gary Davis said there are two issues
driving the acquisition. "One is consolidation of our ownership
interest in the Empress II plant, which is the largest and lowest
cost facility in that Empress complex. It just was an
administrative hassle to continue as a minority shareholder, and we
had an opportunity to purchase AEC's interest in the plant.
"The other thing is a desire to strengthen our position in
ethane. In the near-term we see some opportunities in ethane that
we can take advantage of. There's a lot of development that's
occurring in Alberta in particular."
Joe Fisher, Houston
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