TransCanada Selling LA Liquids Businesses
TransCanada PipeLines Ltd. has put its Gulf Coast midstream
facilities and its U.S. petroleum and products marketing and
trading businesses on the block, continuing to slim down to its
core transmission holdings.
"The sale of these assets will reduce our exposure to commodity
prices and focus our earnings on fee-based revenues," said George
Watson, TransCanada president and CEO. "We are focusing our
portfolio on those areas of greatest competitive advantage....our
pipeline, midstream and power generation infrastructure across
Canada and the northern tier of the United States." Watson
acknowledged the liquids plants up for sale "have suffered from the
recent market conditions which are the worst experienced in the
TransCanada had previously put its ANGUS Chemical Co. up for
sale. ANGUS was part of the acquisition of Alberta Natural Gas, and
the liquids plants and marketing businesses based in Houston, Los
Angeles, and Charlotte, NC, came with a Northridge Petroleum
purchase in 1994. Also, it was noted, when TransCanada purchased
Nova Corp., last year it spun off Nova's chemicals business.
The company has ownership interest in six midstream facilities
in Louisiana, Eunice, Bluewater, Sabine Pass, Rayne, Riverside and
Cow Island, and operates five of those. The plants have the
capability to produce more than 90,000 b/d of liquids, processing
up to 2.2 Bcf/d of natural gas. Products include ethane,
iso-butane, natural butane, propane and natural gasoline.
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