Gulf Midstream Services (GMS), a partnership between KeySpanEnergy Development Co. (KEDC) and Gulf Canada Resources, enlargedits Canadian midstream presence yesterday by announcing anagreement to buy Barrington Petroleum’s 38% interest in the PaddleRiver gas plant and related gas gathering systems. The $9 millionpurchase gives the partnership 76% interest of the only plant thatwill be directly connected to both the ATCO Pipeline system and theAlliance Pipeline.

The Paddle River facilities are located 62 miles west ofEdmonton, AB. The plant is capable of processing up to 82 MMcf/d ofraw sour gas. With current throughput of about 42 MMcf/d, theplant’s unutilized capacity represents a significant opportunity,GMS said. The acquired assets will be owned by KEDC and managed byGMS. Crestar Energy is the other major party with ownershipinterest and is also the plant operator.

“With increased industry activity in the area and the AlliancePipeline connection, we expect this plant to be an attractivelong-term investment for KEDC,” said GMS president Jim Bertram.

This purchase is just the start of GMS’ activities this spring,Bertram added. “In April, GMS will complete construction of thefinal leg of a raw gas pipeline network that will connect theBrazeau River, Nordegg River and Strachan gas plants, representinga combined sour gas processing capacity of 568 MMcf/d… At theBigoray gas plant, GMS has initiated a project to expand thegathering system and add 30 MMcf/d of sour gas processing capacity,which we expect to be ready by mid-year. And at Worsley, GMS willcomplete the expansion of the north gathering system in April toaccommodate additional sour gas volumes at our newly expandedprocessing facility.”

The Paddle River deal is GMS’ second major purchase this year.In January, the company purchased the Strachan North Gas GatheringSystem from Westcoast Capital Corp., a Westcoast Energy subsidiary.The gathering system is a 41-mile gas pipeline, constructed in 1998and located in west central Alberta. It currently transports about115 MMcf/d of raw sour gas to the Strachan Gas Plant forprocessing.

The company offers an integrated range of midstream andmarketing services to natural gas producers in western Canada. GMSholds substantial interests in 14 gas processing plants andextensive gathering systems, with 1.5 Bcf/d of raw gas processingcapacity.

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