Westcoast Energy announced plans to buy an additional 9.1% shareof the now-approved Alliance Pipeline Project from Unocal Corp.,which indicated its interest in selling the share earlier this yearas part of a corporate restructuring. The purchase will increaseWestcoast’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 tothe completion of formal agreements.

“This is an excellent project. It has received all of thenecessary Canadian and U.S. approvals to proceed with construction.It is ready to go,” noted Michael Phelps, Westcoast’s chairman. “Aswell, it is almost fully subscribed by shippers with 15 year termagreements.”

He noted the pipeline is a significant link between Westcoast’slarge interests in British Columbia and its subsidiary Union Gas inOntario. “It supports our plans to build the TriState andMillennium Pipeline extensions beyond Chicago through our Union GasHub at Dawn, Ontario,” he said. “In addition to this, ourparticipation in the Maritimes &amp Northeast Pipeline affirms ourpresence in all major Canadian natural gas developments. Fundingthese projects in 1999 forms the backbone of the largest capitalexpenditure budget Westcoast has ever planned.”

Scheduled for service in the second half of 2000, Alliance is a1,926-mile pipeline project that will move 1.325 Bcf/d of gas fromnortheastern B.C. and northern Alberta to the Chicago area marketcenter for distribution throughout North America.

Rocco Canonica

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