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Industry Briefs

Industry Briefs

Pioneer Natural Resources Co. of Dallas closed a $62.3 million sale of South Texas gas properties to CNG Producing Co. Proceeds will retire bank debt. Pioneer also agreed to sell a West Texas property for $35 million to EnerQuest Oil & Gas of Midland, TX. The property is the last waterflood field operated by Pioneer. Selling the higher-cost field cuts Pioneer's operating costs. The transaction is scheduled to close by the end of the third quarter with a Jan. 1, 1999 effective date. Pioneer announced the property sales in June. Pioneer property divestitures in Canada are progressing as expected, and the company expects to close the last of several Canadian deals this month. Pioneer has major operations in the United States, Canada and Argentina.

TransCanada PipeLines Ltd. has agreed to sell subsidiary ANGUS Chemical Co. to Dow Chemical for an undisclosed sum. "Although ANGUS Chemical is an excellent asset, it does not fit with our strategic direction," said TransCanada CEO Doug Baldwin. Headquartered in Buffalo Grove, IL, ANGUS specializes in manufacturing and marketing nitroparaffins and their derivatives. The sale is part of a reorganization that is expected to also include the sale of TransCanada's Gulf Coast midstream facilities and its U.S. petroleum and products marketing and trading businesses.

Northern States Power Co. issued a request for proposals (RFP) for up to 1,200 MW of power generation capacity and associated energy for a period of 10 years, beginning sometime between May 1, 2003, and May 1, 2005. NSP will use the additional resources to meet increased retail customer demand. NSP is seeking peaking, intermediate and base-load resources. The RFP is open to all sources of power, including renewable resources. NSP will select winning proposals based on cost, environmental impact and delivery guarantees. Before awarding the contract(s), NSP will submit the evaluation of the proposals to the Minnesota Public Utilities Commission (MPUC) for review. For a copy of the RFP or more information, contact David L. Zuck at (612) 330-6452. He also may be reached via fax at (612) 330-5868.

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