Duke Energy Field Services (DEFS) reported late last week that it is more than doubling its natural gas processing capacity in western Canada with the acquisition of Canadian Midstream Services Ltd. (CMSL). If completed, the acquisition will significantly strengthen the midstream company’s asset base in the region.

Through its subsidiary Duke Energy Midstream Serrvices Canada Ltd., DEFS’ net natural gas processing capacity in western Canada will surge from 205 MMcf/d to 555 MMcf/d. In addition, it will take ownership interest in eight gathering and processing facilities. DEFS did not disclose terms of the sale.

“The acquisition of CMSL continues DEFS’ strategy of investing in strategic North American midstream assets,” said Jim Mogg, CEO of DEFS. “The CMSL facilities come with distinct competitive advantages coupled with significant growth opportunities in three geographically diverse operating areas. This acquisition is an excellent means to increase our Canadian midstream asset base.”

In addition to DEFS’ existing assets in the Peace River Arch area, the acquisition will give DEFS midstream operations in the three new core areas of the Brazeau River area in the foothills of Alberta, the Nevis/Fenn area in central Alberta and the Pesh Peggo region of northeastern British Columbia.

The successful completion of the proposed acquisition is subject to the approval of Investment Canada.

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