Assets

Dynegy opened a new $57 million gas liquids fractionationfacility near Lake Charles, LA, that can separate up to 55,000barrels/d of gas liquids into ethane, propane and a butane andnatural gasoline mix. The facility is fed primarily from offshoreproduction in the Gulf of Mexico via pipeline and truck throughDynegy’s Hackberry terminal. Its products are primarily shippedthrough pipeline to customers in the petrochemical/refiningindustry in Lake Charles.

Ultramar Diamond Shamrock and Phillips Petroleum signed a letterof intent to combine all of the operating assets of UltramarDiamond Shamrock and the North American refining, marketing, andtransportation (RM&T) operations of Phillips into a jointventure company named Diamond 66. The deal will not affect Phillipsnatural gas activities, a spokeswoman said.

Spirit Energy 76, Unocal Corp.’s Lower 48 exploration andproduction unit reached a definitive agreement to sellsubstantially all of its oil and gas assets in Michigan to NewstarEnergy USA Inc. and Omimex Energy Inc. for about $37.25 million incash and 670,000 shares of stock in Newstar Resources, the parentcompany of Newstar Energy.

A wholly owned subsidiary of Potomac Electric Power Co. (Pepco)has purchased the assets and operations of a Maryland-based gasretail marketing firm for an undisclosed amount. The transactiongives Pepco through its subsidiary, Pepco Services, the capabilityto offer for the first time natural gas to its commercial,institutional and industrial customers.

Duke Energy Field Services further expanded its South Texasgathering and processing assets with the acquisition of theBrooks-Hidalgo Pipeline System from subsidiaries of Aquila Energyand Mitchell Energy effective April 1.