Westcoast Buys Unocal's 9% Stake in Alliance
Westcoast Energy announced plans to buy an additional 9.1% share
of the now-approved Alliance Pipeline Project from Unocal Corp.,
which indicated its interest in selling the share earlier this year
as part of a corporate restructuring. The purchase will increase
Westcoast's total interest in the project to 23.6% from 14.5%.
Westcoast's total equity in the project is now about $500 million.
The sale is scheduled to close by the end of December, subject to
the completion of formal agreements.
"This is an excellent project. It has received all of the
necessary Canadian and U.S. approvals to proceed with construction.
It is ready to go," noted Michael Phelps, Westcoast's chairman. "As
well, it is almost fully subscribed by shippers with 15 year term
He noted the pipeline is a significant link between Westcoast's
large interests in British Columbia and its subsidiary Union Gas in
Ontario. "It supports our plans to build the TriState and
Millennium Pipeline extensions beyond Chicago through our Union Gas
Hub at Dawn, Ontario," he said. "In addition to this, our
participation in the Maritimes & Northeast Pipeline affirms our
presence in all major Canadian natural gas developments. Funding
these projects in 1999 forms the backbone of the largest capital
expenditure budget Westcoast has ever planned."
Scheduled for service in the second half of 2000, Alliance is a
1,926-mile pipeline project that will move 1.325 Bcf/d of gas from
northeastern B.C. and northern Alberta to the Chicago area market
center for distribution throughout North America.
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