Canadian pipeline partnership Fort Chicago Energy Partners LP is pumping up its growing natural gas pipeline assets, following an agreement to purchase DTE Energy Co.’s 16.41% interest in the Portland Natural Gas Transmission System (PNGTS) for about C$31.3 million. The high-capacity interstate pipe connects the TransQuebec and Maritimes Pipeline at the Canadian border and the Maritimes and Northeast Pipeline at Westbrook, ME with the Tennessee Gas Pipeline System.

Before the transaction can be completed, Fort Chicago said it would need to obtain a waiver of rights of first refusal by the other owners of PNGTS, which include El Paso Corp., TransCanada Pipelines and Gaz Metropolitain & Co. Ltd. With all of the approvals, the acquisition could close in September or October. DTE has held an interest in PNGTS since its merger with MCN Energy Group in 1999 (see Daily GPI, Oct. 6, 1999).

Fort Chicago, headquartered in Calgary, was formed in 1997, and originally held a 26% interest in the Alliance Pipeline and the Aux Sable Plant. Last year, Fort Chicago and Canadian pipeline owner Enbridge Inc. made a deal with Williams to buy its Alliance interest (see Daily GPI, Oct. 31, 2002). Then earlier this year, the two Canadian companies made another deal with Duke Energy to buy its stake in the Alliance pipe and its interest in the Aux Sable processing facility (see Daily GPI, March 21).

©Copyright 2003 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.