Coastal Snags TransCanada Assets
TransCanada PipeLines announced last week that all of its U.S.
midstream assets and its gas liquids trading and marketing
operations have been purchased by Coastal Corp.'s field services
subsidiary for an undisclosed sum.
The deal includes TransCanada's Louisiana midstream facilities,
among which are four gas processing plants, three NGL fractionation
plants, 380 miles of NGL pipelines, and 2.4 million barrels of NGL
storage. The processing facilities can handle 2.1 Bcf/d of gas and
the NGL fractionation plants have a capacity to fractionate 90,000
b/d of liquids. A total of 156 employees will be affected. The sale
is subject to the approval of Coastal's board and is expected to
close by the end of the fourth quarter of 1999.
"These assets are well positioned in their markets and have been
well managed by experienced and dedicated people," said Doug
Baldwin, TransCanada's president and CEO. "They do not, however,
fit with our strategic direction of focusing our business and
innovating for growth. The sale of these assets is yet another
example of TransCanada executing its strategy."
The assets were put up for sale this summer as part of a major
corporate restructuring that also included the sale of Angus
Chemical to Dow. TransCanada also is pursuing the sale of its
petroleum marketing and trading operations and is transferring its
remaining gas marketing personnel to offices in New England to
focus on a new regional approach to marketing and trading centered
in the Northeast. A spokesman warned there's plenty more to come.
TransCanada is expected to make another major restructuring
announcement in the fourth quarter, he said.
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