Canadian

Canada’s National Energy Board has shaved about $2.2 million offof Maritimes & Northeast Pipeline’s requested cost of serviceand cut about $11.6 million out of the pipeline’s requested ratebase. The NEB also altered Maritimes’ plans regarding discounts.

Canada’s National Energy Board has shaved about $2.2 million offof Maritimes & Northeast Pipeline’s requested cost of serviceand cut about $11.6 million out of the pipeline’s requested ratebase. The NEB also altered Maritimes’ plans regarding discounts.

Calgary’s TransCanada Power LP, a unit of TransCanada Pipelines Ltd., is buying Westcoast Energy Inc.’s interest in five Canadian cogeneration plants in a deal valued at C$512 million. Westcoast, based in Vancouver, is expected to net C$75 million after taxes, and turn its attention toward its new power generation projects.

To help expand its Canadian business, Houston’s El Paso EnergyCorp. has formed a strategic affiliation with The Enerplus Group,one of Canada’s oldest and largest managers of public and privateoil and gas income funds, which manages assets of more than $1billion. The Enerplus Group includes the EnerMark Income Fund, theEnerplus Resources Fund and several private pension resourcecorporations.

Developers of what at one time was California’s first merchantpower plant proposal are gearing up for more concentrated effortsto develop natural gas deals and power marketing efforts, assumingthey get final federal government environmental okays for their$350 million, 700 MW High Desert generation plant by mid-summer.Although delayed more than two years, the project last week (May 3)gained its long-sought state approval for the plant from theCalifornia Energy Commission (CEC).

Alberta Energy Co. Ltd. became more U.S. than Canadian producerlast week by grabbing a major foothold in the Rocky Mountainregion. The company is buying all the common shares of McMurry Oil,which owns 1.2 Tcf of gas reserves and significant explorationacreage in the Jonah Field in the Green River Basin in southwesternWyoming. It also is purchasing the 245-mile Jonah Field gasgathering system, which currently transports 320 MMcf/d of gas andis primed for an expansion to 440 MMcf/d. The transactions arevalued at a total of C$1.15 billion.

Alberta Energy Co. Ltd. became more U.S. than Canadian produceryesterday by grabbing a major foothold in the Rocky Mountainregion. The company is buying all the common shares of McMurry Oil,which owns 1.2 Tcf of gas reserves and significant explorationacreage in the Jonah Field in the Green River Basin in southwesternWyoming. It also is purchasing the 245-mile Jonah Field gasgathering system, which currently transports 320 MMcf/d of gas andis primed for an expansion to 440 MMcf/d. The transactions werevalued at a total of C$1.15 billion.

The GRI’s latest report indicates producers won’t run out ofwork anytime soon in the Western Canadian Sedimentary Basin (WCSB),which is estimated to have 166 Tcf in new pool potential and a 31.4Tcf reserve appreciation potential. Because of these positiveestimates, the GRI said the region could surpass 8 Tcf ofproduction by 2015.

Gulf Midstream Services (GMS), a partnership between KeySpanEnergy Development Co. (KEDC) and Gulf Canada Resources, enlargedits Canadian midstream presence last week 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 in the only plant thatwill be directly connected to both the ATCO Pipeline system and theAlliance Pipeline. The Paddle River facilities are located 62 mileswest of Edmonton, AB. The plant is capable of processing up to 82MMcf/d of raw sour gas. With current throughput of about 42 MMcf/d,the plant’s unutilized capacity represents a significantopportunity, GMS said. “With increased industry activity in thearea and the Alliance Pipeline connection, we expect this plant tobe an attractive long-term investment for KEDC,” said GMS presidentJim Bertram.