Williams Seals Deal on TransCanada's Assets
Williams' energy services business unit reported the closure of its previously announced acquisition of the natural gas liquids (NGL) portion of TransCanada's midstream operations yesterday. The $540 million deal was first announced on Aug. 3 (see Daily GPI, Aug. 4).
The deal includes TransCanada's holdings in the Cochrane, Redwater, Empress II, Empress V and Younger natural gas liquids and extraction facilities, along with the West Stoddart natural gas processing plant. The asset package located in western Canada represents about 6 Bcf/d of gas processing capacity, approximately 225,000 b/d of NGL production capacity, an NGL pipeline and more than five million barrels of NGL storage capacity.
Steve Malcolm, CEO of Williams' energy services business, said, "The completion of this agreement is a key milestone for Williams' midstream business. It vaults us into Canada for the first time in a prominent way and reinforces Williams' role as a leading NGL producer in North America. It also builds upon our acquisition of MAPCO in 1998 when we added around 10,000 miles of NGL pipes to our gathering and processing operations."
Williams will become the operator of the Cochrane, Redwater and West Stoddart sites, but the Empress plants and Younger facility will continue to be operated by third parties, the company said.
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