TransCanada PipeLines announced last week that all of its U.S.midstream assets and its gas liquids trading and marketingoperations have been purchased by Coastal Corp.’s field servicessubsidiary for an undisclosed sum.

The deal includes TransCanada’s Louisiana midstream facilities,among which are four gas processing plants, three NGL fractionationplants, 380 miles of NGL pipelines, and 2.4 million barrels of NGLstorage. The processing facilities can handle 2.1 Bcf/d of gas andthe NGL fractionation plants have a capacity to fractionate 90,000b/d of liquids. A total of 156 employees will be affected. The saleis subject to the approval of Coastal’s board and is expected toclose by the end of the fourth quarter of 1999.

“These assets are well positioned in their markets and have beenwell managed by experienced and dedicated people,” said DougBaldwin, TransCanada’s president and CEO. “They do not, however,fit with our strategic direction of focusing our business andinnovating for growth. The sale of these assets is yet anotherexample of TransCanada executing its strategy.”

The assets were put up for sale this summer as part of a majorcorporate restructuring that also included the sale of AngusChemical to Dow. TransCanada also is pursuing the sale of itspetroleum marketing and trading operations and is transferring itsremaining gas marketing personnel to offices in New England tofocus on a new regional approach to marketing and trading centeredin the Northeast. A spokesman warned there’s plenty more to come.TransCanada is expected to make another major restructuringannouncement in the fourth quarter, he said.

Rocco Canonica

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