A subsidiary of Coastal Field Services has purchased the GilmoreNo. 3 gas processing plant, near Edina, TX, in Hidalgo County fromPG&E Gas Transmission-Texas (PG&E-GTT). The plant wasconstructed in 1997 and has a capacity to extract 6,000 b/d of gasliquids from inlet volumes of up to 125 MMcf/d of gas. Theagreement, signed Nov. 1, also provides for Coastal to controlcapacity both upstream of the plant and exiting the plant.PG&E-GTT will continue to own and operate the Gilmore No. 1 andNo. 2 plants, which have capacity to extract 6,800 barrels per dayof gas liquids from combined inlet volumes of up to 140 MMcf/d.PG&E-GTT also will continue as operator for the Gilmore No. 3plant. “This acquisition reflects Coastal’s strategy of integratingnatural gas infrastructure in areas where Coastal has significantexploration and production interests,” said Coastal CEO David A.Arledge. “Due to ongoing drilling successes and recentacquisitions, South Texas is one of Coastal’s fastest-growingnatural gas production areas.”

Southern Union has completed its merger with PennsylvaniaEnterprises. “The prompt completion of this merger is a vote ofconfidence by our regulators and shareholders, as well as thefinancial community,” said Southern Union President Peter H.Kelley. PEI shareholders will receive 1.59 shares of Southern Unioncommon stock and $3 in cash for each share of PEI common stock.Southern Union also announced a stock repurchase program not toexceed $40 million. It is issuing 17 million shares of common stockand is paying $32 million in cash in connection with thistransaction. The Pennsylvania distribution properties will operateas a division of Southern, serving 152,000 customers in 13counties. In addition, on Oct. 5 Southern Union announced a mergeragreement with Fall River Gas, a gas distributor serving 48,000customers in southeastern Massachusetts. The transaction, valued at$75 million is expected to have Fall River Gas shareholder andregulatory approvals by the middle of 2000. Southern Union is aninternational energy distribution company, serving more than 1.2million customers through its divisions – Southern Union Gas,Missouri Gas Energy, PG Energy and Atlantic Utilities.

©Copyright 1999 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.