CMS Energy Corp., which hinted earlier this month that it was working to sell Panhandle Eastern Pipeline, apparently has received at least three bids and interest by a few others to buy the natural gas interstate system, valued at more than $1.5 billion (see Daily GPI, Nov. 15). Suitors with offers on the table are said to be TransCanada PipeLines Ltd., Sempra Energy and American International Group (AIG).

Berkshire Hathaway Inc. also has expressed interest in the pipeline, according to Reuters. This year, the Warren Buffett company has invested in several valuable domestic energy assets, including the purchase of Northern Natural Gas Pipeline Co. and Kern River Gas Transmission. Sources apparently said Buffett had shown “strong interest,” but has put no offer on the table.

The Panhandle system extends more than 10,000 miles from Canada to the Gulf of Mexico. CMS, which has been selling off assets to improve its liquidity, bought the system and some other assets from Duke Energy Corp. for $2.2 billion in 1999 (see Daily GPI, April 22, 1999). Reuters reported that CMS wants $1.5 billion to $2 billion for the system.

Neither TransCanada, Sempra or AIG would comment on the rumors. However, in September, TransCanada CEO Hal Kvisle said the company would “continue to seek out new acquisitions in Canada and the United States,” following news that it was acquiring some U.S.-based power plants (see Power Market Today, Sept. 16). And in July, Kvisle said there were a lot of opportunities in both the North American pipe and generation business, and indicated that TransCanada would go after acquisitions (see Daily GPI, July 29).

Likewise in July, Stephen Baum, Sempra’s CEO said, “We have $2.6 billion in cash and an investment-grade credit rating. We’re studying a whole lot of opportunities. Although we prefer to have healthy competitors because that makes for a more robust market, the distress of many others will cause assets to be sold. Things are developing rapidly, and I think you will see some firms forced to sell assets. So we’re looking at a number of opportunities,” he told analysts during a conference call (see Daily GPI, July 25).

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