Tractebel Digests Cabot LNG
Tractebel of Belgium yesterday completed the purchase of Cabot LNG, the largest U.S. importer of liquefied natural gas, from Cabot Corp., in a deal worth $680 million.
The agreement to purchase was originally signed by the two companies on July 13 (see Daily GPI, July 14). Cabot LNG is the only active importer and distributor of LNG on the East Coast, supplying 20% of the annual New England gas demand.
The deal gives Tractebel a firm foothold in the physical gas markets in the north east market area, and complements the activities of its trading arm TEMI. Tractebel intends to double the Cabot LNG terminal's capacity in the near future, with half of the expanded capacity already committed to long-term sales contracts. (see Daily GPI, Sept. 11).
The deal will give Tractebel the LNG terminal in Everett, MA, operated by subsidiary Distrigas of Massachusetts, along with a 10% interest in a liquefaction facility in Trinidad and Tobago and the LNG tanker, Matthew.
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