Taking its initial plunge into the Canadian Midstream market,Duke Energy announced last week its subsidiary, Duke EnergyServices Canada Ltd., acquired gas gathering and processing assetsfrom Calgary-based Cometra Energy. Financial terms were notdisclosed.

The northwestern Alberta assets include the Fourth Creek sourgas processing plant and gathering system, which is capable ofhandling 69 MMcf/d of production. The purchase also includesCometra’s 100% interest in the recently approved Pouce Coupe Plant,a 23 MMcf/d sour gas processing plant that is scheduled to be inservice by the end of June. The plant will be integrated into thewestern end of the 100-mile Fourth Creek gas gathering system nearthe British Columbia provincial border. In early February, theNational Energy Board (NEB) granted approval for an extension to bebuilt from the Pouce Coupe plant into British Columbia. Thistransaction gives Duke Cometra’s 50% interest in the extension. Theother half of the extension belongs to Star Oil &amp Gas Co.

“These midstream assets have access to growing regional gassupplies and are strategically located near TransCanada’s NOVApipeline system and the planned Alliance Pipeline. This purchaserepresents a solid initial entry into the Canadian midstreambusiness,” said Jim Mogg, president of Duke Energy’s Canadian andU.S. midstream business units.

Duke spokesman John Barnett said the move adds to Duke’s alreadypowerful diversity. “I would say this acquisition is a cornerstonefor Duke Energy Canada. I would be hesitant to say that it pointsthe company in a new direction because Duke has so many differentunits operating individually. But, for sure, this marks a newoption.”

Duke Energy Field Services Inc. also gained a big boost lastweek in the attempt to close it’s November deal with Union PacificResources. The Federal Trade Commission approved the deal onTuesday, after the mandatory Hart-Scott-Rodino Act waiting periodof 30 days expired. Duke said it expects the $1.35 billiontransaction to close by March 31. Duke officials view westernCanada as a natural extension of its North American midstreambusiness.

Cometra officials said they hope this marks the beginning of aprofitable relationship between the two companies. Cometra Energy(Canada) Ltd. is a wholly owned subsidiary of Electrafina S.A. ofBrussels, Belgium. The assets were previously operated by theirwholly-owned subsidiary Canrock Pipeline. Cometra has been inbusiness in Western Canada for 10 years.

A Duke official said this announcement is the final step of thetransaction and all regulatory issues have been settled.

John Norris

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