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TransCanada Selling LA Liquids Businesses

TransCanada Selling LA Liquids Businesses

TransCanada PipeLines Ltd. has put its U.S. Gulf coast midstream facilities and petroleum and products marketing and trading businesses on the block, continuing to slim down assets to its core transmission holdings.

"The sale of these assets will reduce our exposure to commodity prices and focus our earnings on fee-based revenues," said George Watson, TransCanada president and CEO. "We are focusing our portfolio on those areas of greatest competitive advantage....our pipeline, midstream and power generation infrastructure across Canada and the northern tier of the United States." Watson acknowledged the liquids plants up for sale "have suffered from the recent market conditions which are the worst experienced in the last decade."

TransCanada had previously put its ANGUS Chemical Co. up for sale. ANGUS was part of the acquisition of Alberta Natural Gas, and the liquids plants and marketing businesses based in Houston, Los Angeles, and Charlotte, NC, came with a Northridge Petroleum purchase in 1994. Also, it was noted, when TransCanada purchased Nova Corp., last year it spun off Nova's chemicals business.

The company has ownership interest in six midstream facilities in Louisiana, Eunice, Bluewater, Sabine Pass, Rayne, Riverside and Cow Island, and operates five of those. The plants have the capability to produce more than 90,000 b/d of liquids, processing up to 2.2 Bcf/d of natural gas. Products include ethane, iso-butane, natural butane, propane and natural gasoline.

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