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AltaGas' Growth Strategy in High Gear

AltaGas' Growth Strategy in High Gear

AltaGas Services recently bought three Canadian processing facilities and associated gathering lines worth $17.4 million, continuing the Calgary-based midstream company's trek toward the $200 million growth-spending goal set at the beginning of 1999. With this purchase, AltaGas has spent and committed a total of $115 million in its acquisitions and expansion program this year.

The northwestern and central Alberta facilities were purchased from two Canadian producers who wished to remain anonymous. The plants have a total processing capacity of 50 MMcf/d and currently process 28 MMcf/d of sweet gas and 600 b/d of natural gas liquids. Their addition increases AltaGas' overall processing capacity by 10%.

On the financial side of the company's growth strategy, AltaGas recently gained conditional listing approval from the Alberta Stock Exchange and trading is expected to commence prior to July 31. AltaGas will also seek a listing from a senior exchange in the near term.

Established in April 1994, AltaGas has acquired or constructed over $370 million in natural gas assets, including 57 processing facilities with intake capacity of 585 MMcf/d, approximately 2,500 miles of gathering lines in Alberta and Saskatchewan, 199 MMcf/d of ethane and natural gas liquids extraction plant processing capacity and ownership of AltaGas Utilities Inc.

John Norris

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ISSN © 2577-9877 | ISSN © 1532-1266
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