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TransCanada Buys Half of PanAlberta Resources

TransCanada Buys Half of PanAlberta Resources

TransCanada Midstream (TCM), a business unit of TransCanada PipeLines Ltd., bought Alberta Energy Co.'s (AEC) outstanding shares (49.995%) in PanAlberta Resources Inc. (PARI) for $35 million plus about $7 million in assumed debt. PARI owns 50% of the Empress II straddle plant and holds gas liquids extraction rights with respect to gas volumes of Pan-Alberta Gas Ltd.

"The purchase of the outstanding shares in PARI consolidates and strengthens our position in the Empress Natural Gas Liquids (NGLs) complex," said Randy Findlay, TransCanada senior vice president. At the Empress site TCM currently has 2.5 BCF/d of processing capacity with another 500 MMcf/d of capacity under construction.

TransCanada spokesman Gary Davis said there are two issues driving the acquisition. "One is consolidation of our ownership interest in the Empress II plant, which is the largest and lowest cost facility in that Empress complex. It just was an administrative hassle to continue as a minority shareholder, and we had an opportunity to purchase AEC's interest in the plant.

"The other thing is a desire to strengthen our position in ethane. In the near-term we see some opportunities in ethane that we can take advantage of. There's a lot of development that's occurring in Alberta in particular."

Joe Fisher, Houston

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