Alberta

PG&E Corp., Williams and Alberta-based Fort Chicago Energy announced plans Wednesday to build a 223-mile interstate pipeline from the proposed Jordan Cove liquefied natural gas (LNG) facility in Oregon to pipelines in California and the greater Pacific Northwest.

EnCana Corp. has completed its sale of some heavy-oil assets in east central and southern Alberta to Harvest Energy Trust for US$395 million. The property sale represents about 16,800 boe/d of production after royalties and is made up of predominantly medium- and heavy-oil assets. The sale is part of EnCana’s first tranche of divestitures to reduce its debt. Tristone Capital Inc. served as a financial adviser to EnCana on this transaction.

Williams has completed the sale of three straddle plants in southern Alberta to Inter Pipeline Fund of Calgary for C$715 million (US$536 million). The sale includes Williams’ 100% ownership interest in the Cochrane and Empress II plants, and Williams’ 50% ownership interest in the Empress V facility. The sale does not include Williams’ olefins business that extracts natural gas liquids and olefins from oil sands refining near Fort McMurray, AB. The liquids are then fractionated into various products at a Williams facility near Redwater, AB. In addition to the proceeds from the sale, the transaction will release approximately $30 million in U.S. funds of letters of credit and prepayments back to Williams by the end of the year. Williams expects to record an estimated pre-tax gain of $190 million in U.S. funds on the sale, which will be reported in discontinued operations in its third quarter financial results.

Williams said late Wednesday that it had completed the sale of three straddle plants in southern Alberta to Inter Pipeline Fund of Calgary for C$715 million (US$536 million). The sale includes Williams’ 100% ownership interest in the Cochrane and Empress II plants, and Williams’ 50% ownership interest in the Empress V facility.

KeySpan Energy Canada said it has started building a 52-mile gas pipeline in the Pembina area of Alberta to deliver gas to its Brazeau River gas plant. Current production in the area is severely restricted due to the lack of sour gas processing capacity. The pipeline, known as the Brazeau Northeast Gas Gathering System, is expected to be operational in August. The pipeline routing has been chosen to follow the development of the highly prospective Pembina Nisku edge bank play. It will be a combination of 6- and 8-inch diameter pipe with a maximum capacity of 28 MMcf/d and has been designed to transport sour gas containing up to 25% hydrogen sulphide. Gross capital expenditures will be $18.4 million. The KeySpan Brazeau River gas plant currently has sufficient capacity to process the full capacity of the pipeline.

Strong production gains from its existing leases in Alberta and Saskatchewan will pump up Calgary-based Enterra Energy Corp.’s third quarter earnings 300% over a year ago, the company said Thursday.

NOVA lifted Tuesday afternoon a force majeure declaration for the 8-inch Hamilton Lake Mainline in eastern Alberta (see Daily GPI, Sept. 9) and reinstated services at the Hamilton Lake and Veteran Meter Stations.

Anadarko Petroleum Corp. has made a large natural gas discovery in the Saddle Hills area of Alberta, expanding the proven and probable reserves from the multi-zone play to 130 Bcf from the previous estimates of 90 Bcf. Before Anadarko began to step up its activity in Saddle Hills late in 2001, the play held an estimated 6 Bcf of proven reserves.

Anadarko Petroleum Corp. has made a large natural gas discovery in the Saddle Hills area of Alberta, expanding the proven and probable reserves from the multi-zone play to 130 Bcf from the previous estimates of 90 Bcf. Before Anadarko began to step up its activity in Saddle Hills late in 2001, the play held an estimated 6 Bcf of proven reserves.