Alliance Equity Partner Distributing Shares
Calgary-based Fort Chicago Energy Partners L.P. --- which owns a 26%
equity in the Alliance Pipeline project --- said that its largest unit
holder, Gendis Inc., will distribute 8.5 million units to shareholders
by Nov. 24. Gendis, based in Winnepeg, will retain 6.2 million units of
Fort Chicago following the transaction.
Fort Chicago CEO Guy Turcotte said the transaction will "transform
Fort Chicago into a more widely held public entity," and said it would
"greatly increase its market float." The partnership became a
publicly traded entity in January 1998, providing investors with an opportunity
to participate in the Alliance projects. Fort Chicago Units trade on the
Toronto Stock Exchange under the symbol "FCE.UN."
The dividend will be 0.5 of a Fort Chicago unit for each one Gendis
common share outstanding. No fractional Fort Chicago Class A units will
be distributed. Gendis and trades on the Toronto Stock Exchange.
The C$4.6 billion Alliance natural gas and liquids pipeline, designed
to transport 1.325 Bcf/d from northeast British Columbia to Chicago, has
completed its construction phase and now is commissioning the main line,
laterals, compressors and supervisory equipment (see NGI, Aug.
21). The 1,857 mile mainline is stretched to the Chicago area from
northeastern BC, and is on target to begin service at the end of this month,
carrying both natural gas and liquids.
The Alliance Pipeline Ltd. Partnership, the Canadian entity, owns and
will operate 2,257 kilometers (1,402 miles) of mainline, laterals and facilities
in Canada. The Canadian project was constructed at a direct capital cost
of about C$12.4 billion (U.S.$1.6 billion). The American partnership owns
and operates 888 miles of mainline, delivery and facilities in the United
States, which were constructed at a direct capital cost of about $1.5 billion.
Investors in the system include affiliates of Fort Chicago (26%); Coastal
Corp. (14.4%); Enbridge Inc. (21.4%); The Williams Companies Inc. (14.6%);
and Westcoast Energy Inc. (23.6%).
Carolyn Davis, Houston
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