Conoco Canada this week consolidated all of its natural gas marketing services within its gas and power division to expand the scope of customer services and to access new markets in Canada and the United States. The consolidation within its gas and power marketing division, effective Friday, also is expected to expand its pipeline transport options. Conoco Gas & Power Marketing currently markets more than 7 Bcf/d in North America, and controls more than 500 MW.

Previously, the Calgary-based company divided its services between the gas and power division and KeySpan Energy Canada. Five KeySpan employees who were providing natural gas marketing services for Conoco have become Conoco employees.

“We value the high level of service KeySpan has provided to us over the past several years” said Joanna Baker, manager, Gas & Power Marketing, Conoco Canada. “With the recent expansion of Conoco’s Canadian natural gas portfolio, assuming direct control of our marketing processes is an important step toward realizing our growth targets for Conoco’s commercial gas and power marketing business in Canada.”

Last year, Conoco purchased Gulf Canada Resources Ltd., which pushed worldwide reserves almost 40% to 3.7 Bboe, with new assets in North America, Indonesia, the Netherlands and Ecuador (see Daily GPI, May 30, 2001). In North America alone, Conoco upped its natural gas production and proved reserves by 50%, to 1.4 Bcf/d and 4.1 Tcf net. Conoco also gained significant production and strategic positioning in three of the premier natural gas basins in North America: Western Canadian Sedimentary Basin, the San Juan Basin and the South Texas Lobo Trend.

The addition of the production portfolio formerly marketed by KeySpan gives Conoco Gas & Power Marketing more access to natural gas markets in eastern Canada, Chicago, the northeastern United States and the Pacific Northwest. Additionally, it allows Conoco to expand its natural gas transportation options to include the Alliance, Westcoast, TransGas, Foothills and PGT pipelines. Conoco Gas & Power also will be able to access additional capacity on the TransCanada, ATCO, and Iroquois pipelines.

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