CMS Marketing, Services and Trading, a unit of CMS Energy, madeits first foray into Canada by acquiring 50% ownership of Canadiangas marketer PremStar Energy Canada Ltd., which will provide energyprocurement and management services throughout Canada. “PremStarfirmly establishes CMS Marketing, Services and Trading in the toptier of Canada’s energy service providers,” said William W.Schivley, CMS-MST chief operating officer. “This joint venturecombines the financial strength and U.S. energy operations of CMSwith PremStar’s strong Canadian presence to grow our customer basein North America. This is especially strategic as we move toward anopen, restructured North American energy market of the future.”

PremStar is a start-up company currently moving between 15 to 20MMcf/d, Schivley said. “We’ve got some pretty bold plans down theroad. By the end of the year, I’d look for these guys to be uparound 75 MMcf/d.” By the end of 1998, total Canadian volume ishoped to be 25 to 30 Bcf. Schivley said CMS has similar deals inthe works. “One of the key things with our Canadian acquisitionhere and others will be the electric opportunities down the road.”While CMS has had an exploration and production presence in Canadafor years, this is the first marketing enterprise.

Based in Chatham, Ontario, PremStar was created to provide gassupply, storage, energy and risk management services to industrial,commercial, municipal and utility customers in Ontario, Quebec andelsewhere in eastern Canada. “The alliance with CMS-MSTstrategically positions PremStar to be a leader in resolving marketinefficiencies and in providing value-added products and servicesthat are tailored to meet the evolving needs of the various naturalgas market sectors in eastern Canada,” said Max Fantuz, PremStarpresident.

Schivley said PremStar’s founders also make the acquisition anattractive one. PremStar was formed by veteran Canadian gasindustry executives Fantuz, Gregory Aarssen and Michael Kilby.”They’re very informed with how gas moves in Canada.”

Joe Fisher, Houston

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