Crosstex Energy LP closed its purchase of the Vanderbilt System from Devon Energy. The system consists of more than 200 miles of gas gathering and transmission pipelines, including 105 miles of 14 inch mainline, gathering rich natural gas south and west of Houston. “This transaction continues our growth strategy in the Texas Gulf Coast area,” said Crosstex CEO Barry Davis. “We now have a major footprint in the area, with approximately 1,500 miles of pipeline and gathering systems from Corpus Christi to Houston.” The Vanderbilt System starts near Lavaca Bay in Jackson County and proceeds northwest through Wharton and Fort Bend counties, terminating near the Exxon Katy Plant in Waller County. The system gathers about 35 MMcf/day of rich gas and delivers it to the Exxon Katy Plant for processing. Crosstex intends to pursue gas supply efforts in the area in order to provide additional rich gas service to producers in the region. Crosstex operates more than 1,700 miles of pipeline, two processing plants, and 49 natural gas treating plants. It currently provides services for over 700,000 MMBtu/day of natural gas.

AltaGas Services Inc. closed its acquisition of two natural gas pipelines in Suffield, AB, and eight natural gas gathering and processing systems in northeastern Alberta (the Wabasca System) for $114 million from subsidiaries of EnCana Corp. EnCana has entered into long-term transmission and gathering and processing agreements with AltaGas. The Suffield System, located in southeastern Alberta, transports gas produced on and around the Suffield military block to TransCanada’s Canadian mainline at Burstall, SK. The Suffield system consists of two separate pipelines each with 200 MMcf/d of transmission capacity and current total throughput of 220 MMcf/d. The Wabasca System includes eight distinct but geographically concentrated gathering and processing systems, including 432 miles of gathering pipeline, 23,000 horsepower of compression, capacity of 74 MMcf/d and current throughput of 65 MMcf/d. AltaGas sees substantial future growth opportunities as significant large blocks of undeveloped land exist within the existing 60-township catchment area of the gathering system.

Public Service Enterprise Group (PSEG) entered into a new three-year revolving credit facility for $350 million, replacing the five-year $150 million facility set to expire on Dec. 22. The new facility will expire on Dec. 19, 2005. “This new facility enhances PSEG’s already strong financial profile and improves our overall liquidity position,” said CFO Thomas O’Flynn. “The credit facilities available to PSEG and its subsidiaries now add up to $2.47 billion, of which approximately $2.0 billion is currently available to support the operations of the companies.”

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