Southern Energy to Manage CanWest Gas' Business
CanWest Gas Supply Inc., an old-line natural gas aggregator in British
Columbia --- and also the largest --- has agreed to allow Atlanta's Southern
Company Energy Marketing to manage its business.
Under the agreement, Southern will market the aggregator's operations,
which are owned by 38 Western Canada natural gas producers. CanWest was
buying about 430 MMcf/d of natural gas from 100 natural gas producers.
The CanWest agreement will add about 500 MMcf/d of natural gas to Southern's
marketing operations, which had totaled 8.2 Bcf/d before the announcement
The agreement doesn't just strengthen Southern's natural gas marketing
base; it also strengthens its grip in Canada. Earlier this year, the company
set up a similar agreement with Pan-Alberta Gas Ltd., the second-largest
Canadian gas exporter (see NGI, Jan. 31).
As part of the deal, Southern assumed Pan-Alberta's office in Calgary and
integrated its businesses with trading and marketing operations. The Calgary
office is now staffed with former Pan-Alberta employees.
"This agreement is similar to the arrangement we made with Pan-Alberta,"
said Southern spokesman James Peters. "It is structured the same,
and had few changes." Peters said that about eight of 30 CanWest employees
will remain with the company, and will work in the Calgary office.
Southern Company Energy Marketing is owned jointly by Southern Energy
Inc. and Vastar Resources Inc., and the subsidiary provides energy marketing,
risk management and financial services and other energy-related commodities,
products and services to North American customers.
Carolyn Davis, Houston
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