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Coastal Snags TransCanada Assets

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.

Rocco Canonica

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