Based on recent and near-term acquisitions, Alberta EnergyCompany Ltd., (AEC) has upped cash flow projections for itsmidstream business for 2000 from the original estimate of C$145million to over C$165 million.

The company also expects its midstream’s forecasted cash flowfor the year 2001 to be C$230 million, double its performance in1999.

AEC said its growing natural gas storage business is reachingrecord profitability, increasing 55% to C$30 million in the firstnine months of 2000 when compared to the same period for last year.AEC attributes the increase primarily to the “application ofproprietary systems for optimizing the utilization of its gasstorage assets.” Currently, AEC operates two storage facilities inAlberta with a capacity of 95 Bcf, and the 14 Bcf Wild Goosefacility in California. The company also is leasing 3 Bcf ofstorage space in Katy, TX. “We would like to continue to grow ourstorage business,” said AEC spokesman Greg Kist. “We think it isone of our core competencies and we will continue to look foropportunities.” Kist added that the company is actively searchingin North America for storage acquisition prospects.

AEC in September purchased the 30% of AEC Pipelines Ltd., that ispublicly traded, and the company also entered into a partnershipagreement with Koch Pipelines Canada L.P. and Canadian NaturalResources Ltd., to own and expand the crude oil Cold Lake PipelineSystem. AEC also bought out its partner TransCanada Pipelines’interest in the crude oil Express Pipeline System. AEC issued 1.7million common shares to TransCanada on Nov. 6 to satisfy the C$100million purchase price (see Daily GPI, Oct. 3). AEC also expects to close its $100million purchase of a 36% interest crude oil Transandino PipelineSystem in Argentina later this month.

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