Semco Energy bought Iowa Pipelines Associates (IPA) for an
undisclosed amount Monday, in the company's initial move to
strengthen its gas construction services after exiting the gas
marketing business. IPA will continue to operate with its own name
under the Semco Energy Ventures section of the company. Semco said
the deal should close sometime this week. "By acquiring Iowa
Pipeline Associates, we have expanded our capacity to provide
quality engineering and construction services for an ever-widening
customer base," said William Johnson, Semco Energy's CEO. Semco
revealed its strategy last month, when it sold its gas marketing
assets to CoEnergy, an MCN affiliate, for an undisclosed amount.
Johnson, said the sale allowed the company to concentrate on
becoming "one of the largest providers of underground engineering
and construction services in North America." IPA builds underground
natural gas pipelines and local gas distribution networks for
customers in Iowa, Kansas, Missouri, and Nebraska.
Columbia Gas Transmission said it opened a data room to provide
information on 545 miles of small-diameter gas gathering pipelines,
called the CHEWP system, and the Holbrook Storage Field, which has
1.5 Bcf of total capacity in northern West Virginia and
southwestern Pennsylvania. Anyone interested in the assets should
make an appointment to visit the data room in Charleston, WVA, by
calling (304) 357-2282 or visit Columbia's web site at
www.columbiaenergy.com/Facilities/Sale/index.htm. bids are due May
21. Sales are subject to regulatory approval.
©Copyright 1999 Intelligence Press Inc. All rights reserved. The
preceding news report may not be republished or redistributed, in
whole or in part, in any form, without prior written consent of
Intelligence Press, Inc.