Calgary-based Fort Chicago Energy Partners L.P. — which owns a26% equity in the Alliance Pipeline project — said that itslargest unit holder, Gendis Inc., plans to distribute 8.5 millionunits to shareholders by Nov. 24. Gendis, based in Winnepeg, willretain 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,” andsaid it would “greatly increase its market float.” The partnershipbecame a publicly traded entity in January 1998, providinginvestors with an opportunity to participate in the Allianceprojects. Fort Chicago Units trade on the Toronto Stock Exchangeunder the symbol “FCE.UN.”

The dividend will be 0.5 of a Fort Chicago unit for each oneGendis common share outstanding. No fractional Fort Chicago Class Aunits will be distributed. Gendis and trades on the Toronto StockExchange.

The C$4.6 billion Alliance natural gas and liquids pipeline,designed to transport 1.325 Bcf/d from northeast British Columbia toChicago, has completed its construction phase and now is commissioningthe main line, laterals, compressors and supervisory equipment (seeDaily GPI, Aug. 21). The 1,857 milemainline is stretched to the Chicago area from northeastern BC, and ison target to begin service at the end of this month, carrying bothnatural 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 wasconstructed at a direct capital cost of about C$12.4 billion(U.S.$1.6 billion). The American partnership owns and operates 888miles of mainline, delivery and facilities in the United States,which were constructed at a direct capital cost of about $1.5billion.

Investors in the system include affiliates of Fort Chicago(26%); Coastal Corp. (14.4%); Enbridge Inc. (21.4%); The WilliamsCompanies Inc. (14.6%); and Westcoast Energy Inc. (23.6%).

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