CMS Marketing, Services and Trading (CMS-MST) expanded itsCanadian presence yesterday as PremStar Energy, Canada, a CMS-MSTaffiliate, acquired ECNG Inc., an independent energy consultingfirm, from El Paso Energy Marketing Canada Inc. Terms were notdisclosed. PremStar worked together with a group of formerexecutives from ECNG to acquire the firm.

The suburban Toronto-based ECNG provides energy procurement andmanagement services for over 1,000 industrial, commercial andinstitutional clients with more than 10,000 end use locationsacross Canada. With offices in Oakville, Montreal and Vancouver,the company will continue doing business under the ECNG name, as asubsidiary of PremStar. Larry Sandre, vice president of PremStar,said the company has procured gas at a rate of 100 MMcf/d in 1999.

“This acquisition fits well with our vision to furtherstrengthen PremStar’s and CMS-MST’s Canadian presence and isespecially strategic as we move toward a deregulated electricitymarket. ECNG is very well positioned to expand the range of energyservices for its clients,” said Max Fantuz, president of PremStarEnergy.

PremStar provides a portfolio of energy management services,natural gas supply procurement and storage for a large variety ofcustomers. This is the first move PremStar has made since CMS-MSTbought 50% of the Chatham, Ontario-based company in February of 1998(See Daily GPI, Feb 11, 1998). WilliamW. Schivley, executive vice president of CMS-MST said PremStar is thevehicle CMS intends to use to expand its Canadian operations.

“Through our partner, PremStar Energy Canada Ltd., CMS-MST willsubstantially increase its presence in Canada,” Schivley said.Overall CMS-MST completed 560 energy management projects in 1998.

CMS-MST has annual operating revenue of more than $1.2 billion,with 7,000 industrial and commercial customers throughout theeastern and central United States and Canada. It markets annuallyabout 370 Bcf of natural gas, 7 million MWh of electricity and 1.2million barrels of natural gas liquids.

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