Only three months into the new year, El Paso Corp. said it has already completed or entered into more than 50% of the company’s targeted $3.4 billion asset sales goal for 2003.

In just these first three months, El Paso has totaled over $1.7 billion in signed or completed asset sales. The company recently sold its asphalt business, its stake in the ECK Generating project, its remaining share of the Alliance Pipeline and its oil and gas assets in Drumheller, AB.

The asset sales support El Paso’s previously announced 2003 five-point business plan, which includes exiting non-core businesses quickly but prudently, and strengthening and simplifying the balance sheet while maximizing liquidity (see Daily GPI, March 12).

El Paso received $63 million for the asphalt business. The consideration includes a $23 million secured note, with the balance in cash at closing. El Paso had acquired the asphalt business through its merger with The Coastal Corp. in 2001.

The company also sold its 17.8% interest in the ECK Generating project and affiliated businesses to a Swiss energy company. Located near Prague, Czech Republic, the project is a 343 MW power generating station that provides approximately 3% of the country’s total electricity demand. Financial terms were not disclosed.

El Paso also completed the sale of its remaining 2.1% equity interest in Alliance to affiliates of Enbridge Inc. and Fort Chicago Energy Partners L.P. for $24.4 million. Fort Chicago and Enbridge had already acquired the majority of El Paso’s interests in the pipe and all of El Paso’s interest in the Aux Sable natural gas liquids plant and Alliance Canada Marketing in November 2002.

El Paso also closed the sale of its Drumheller area oil and natural gas assets, production facilities, gas plants and undeveloped lands to Canadian Superior Energy Inc. for $36.1 million.

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