AEC's Midstream Forecasts Strong 2000, 2001
Based on recent and near-term acquisitions, Alberta Energy
Company Ltd., (AEC) has upped cash flow projections for its
midstream business for 2000 from the original estimate of C$145
million to over C$165 million. The company also expects its
midstream's forecasted cash flow for the year 2001 to be C$230
million, double its performance in 1999.
AEC said its growing natural gas storage business is reaching
record profitability, increasing 55% to C$30 million in the first
nine months of 2000 when compared to the same period for last year.
AEC attributes the increase primarily to the "application of
proprietary systems for optimizing the utilization of its gas
Currently, AEC operates two storage facilities in Alberta with a
capacity of 95 Bcf, and the 14 Bcf Wild Goose facility in
California. The company also is leasing 3 Bcf of storage space in
Katy, TX. "We would like to continue to grow our storage business,"
said AEC spokesman Greg Kist. "We think it is one of our core
competencies and we will continue to look for opportunities." Kist
added that the company is actively searching in North America for
storage acquisition prospects.
AEC in September purchased the 30% of AEC Pipelines Ltd., that
is publicly traded, and the company also entered into a partnership
agreement with Koch Pipelines Canada L.P. and Canadian Natural
Resources Ltd., to own and expand the crude oil Cold Lake Pipeline
AEC also bought out its partner TransCanada Pipelines' interest
in the crude oil Express Pipeline System. AEC issued 1.7 million
common shares to TransCanada on Nov. 6 to satisfy the C$100 million
purchase price (see NGI, Oct. 8). AEC also expects to close its
$100 million purchase of a 36% interest crude oil Transandino
Pipeline System in Argentina later this month.
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