As part of its effort to improve its financial position, Duke Energy on Monday said it reached an agreement to sell its 30% interest in the Chicago-to-Dawn Vector Pipeline to Enbridge Inc. and DTE Energy Co. for $145 million.

The Charlotte, NC-based energy company said each will pay $72.5 million for a 15% share of Duke Energy’s ownership stake in the natural gas pipeline. Upon completion of the deal, which is expected in October, Calgary-based Enbridge will own 60% of Vector, and DTE Energy of Detroit, MI, will own the remaining 40%.

“The sale of our non-operating, minority interest in Vector Pipeline strengthens Duke Energy’s financial position and is consistent with our overall North American portfolio management strategy,” said Duke Energy Chairman Richard B, Priory. Duke Energy acquired its 30% ownership in Vector Pipeline when it purchased Vancouver-based Westcoast Energy Inc. in 2002.

The 348-mile Vector line, which went into service in December 2000, transports Western Canadian gas from the Chicago-area market hub in Joliet, IL, to the hub at Dawn, ON. It has the ability to transport up to 1.5 Bcf/d of gas. The Vector line provides take-away capacity for the Alliance Pipeline, which is 50% owned by Enbridge and affiliates.

“This acquisition is consistent with our objective of increasing Enbridge’s investment in natural gas transmission assets,” said Enbridge President and CEO Patrick D. Daniel. “Vector has good growth potential and provides a critical transportation link between expected increased supply, through the Chicago hub, and eastern Canadian and U.S. Northeast markets. Vector also complements our recently proposed Beacon Pipeline project, which is designed to move an increasing supply of Rockies gas to eastern markets through Chicago,” he noted.

Similarly, increasing its investment in Vector builds on DTE Energy’s geographic and operating strengths, said Jerry Norcia, president of DTE Gas Storage, Pipelines and Processing. “Since Vector Pipeline serves our gas customers in Michigan and is connected to DTE Energy’s substantial gas storage facilities, an increased position in this key asset is an excellent strategic fit for our company.”

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