NGI Archives | NGI All News Access
OGE Energy, ETP End Midstream, Interstate Pipeline Joint Venture
Less than five months after agreeing to form a joint venture combining OGE’s Enogex midstream business with Energy Transfer Partners LP’s (ETP) interstate operations and midstream operations in the Rocky Mountains, the two companies said they have terminated the agreement.
The companies said recent economic turmoil and uncertainty in the capital markets “made it unfeasible to complete the formation of the joint venture at this time.” Given current conditions and projections for the near term, it was in their mutual interest to terminate the agreement, they said.
“We believe strongly in the strategic merits of the ETP Enogex joint venture, but conditions in the financial markets are such that any partnership completed in the near term would not likely be economically beneficial to OGE,” said OGE CEO Pete Delaney. “While we intend to revisit the possibility of a partnership again when conditions are more favorable, both companies remain well positioned to move forward with their business plans.”
Announced in September, the venture, ETP Enogex Partners LLC, was to have been owned and managed by OGE and ETP on a 50/50 basis (see Daily GPI, Sept. 24, 2008). Oklahoma City-based OGE had planned to contribute to the venture its ownership interest in its gas midstream subsidiary Enogex LLC; ETP was to have contributed its ownership interests in subsidiary Transwestern Pipeline Co. and ETC Canyon Pipeline LLC, along with its 50% interest in Midcontinent Express Pipeline LLC. In addition to a 50% interest in the venture, OGE would have received a cash payment of $266 million.
Â©Copyright 2009Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.
© 2023 Natural Gas Intelligence. All rights reserved.
ISSN © 1532-1231 | ISSN © 2577-9877 |