Calgary, AB-based Enbridge Inc. said Friday it closed on the acquisition of an additional 6.1% interest in the Alliance Pipeline from El Paso Corp, and will pick up another 1.1% interest in the pipeline from El Paso at the end of the first quarter of 2003.

When both transactions are completed, Enbridge said it will have raised its ownership interest in Alliance to approximately 38.2%, and will have increased its interest in the Aux Sable NGL plant and AC Marketing to about 30.9%. This will be equal to the share held by other largest owner in Alliance, Calgary-based Fort Chicago Energy Partners. Fort Chicago is a partnership that was formed for the purpose of holding a share in Alliance and Aux Sable, which processes all gas transported on the Canada-to-U.S. pipeline.

Enbridge said it will pay El Paso approximately C$125 million for the interests in Alliance, Aux Sable and AC Marketing. It will not assume any of El Paso’s gas transportation commitments in the 1.5 Bcf/d Alliance pipeline, which extends from St. John, BC, to Chicago.

In late October, Enbridge also closed on a deal to pick up about 10% of Williams’ interest in Alliance for an estimated $173 million. At about the same time, Fort Chicago exercised or signaled it would exercise its right of first refusal (ROFR) to expand its ownership in Alliance by picking up part of the ownership interests that were held by El Paso and Williams (see Daily GPI, Oct. 14). Duke Energy, which holds a 24% share, is the third owner in Alliance.

The sales of El Paso’s and Williams’ interests in Alliance are part of the companies’ efforts to improve their balance sheets which have come under increasing pressure during the part year in the wake of accounting and other scandals in the energy industry.

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