El Paso Energy Partners L.P. (EPN) announced Wednesday that it has executed a letter of intent to purchase the Chaco cryogenic natural gas processing plant in northern New Mexico’s San Juan Basin, entered into a 20-year, fixed-rate tolling agreement to process gas for El Paso Field Services, and has agreed to buy El Paso Corp.’s 50% interest in a joint venture that owns gas pipeline and gathering systems in the Gulf of Mexico. The value of the transactions was estimated at $284 million.
Executed
Articles from Executed
Northern Border Enters Deal to Buy Midwestern Gas
Northern Border Partners L.P. has executed a definitiveagreement to purchase Midwestern Gas Transmission from El PasoCorp. for an undisclosed price. The sale is expected to close inthe second quarter of this year, subject to necessary approvals.
Municipal Joins Usource’s Online Bidding
Unitil Corp. said yesterday it executed its first aggregated onlinenatural gas transaction for a municipality, the Village of Ilion,NY. Usource, a service of Unitil Corp., is an internet-based energyauction service that caters to customers in Pennsylvania, New York andNew England. Usource’s customers include MI Energy, LLC, the New YorkCity Housing Authority and major industrial firms in the region (seeDaily GPI, March 28).
Tenaska, Williams Form Generating Partnership
Tenaska Alabama Partners LP said last week it executed a fuelconversion services agreement with Williams’ energy marketing andtrading unit for the entire electrical production of the plannedTenaska Lindsay Hill generating station. Under the long-termservice agreement, the Tenaska facility will convert fuel owned andsupplied by Williams into electricity, which will be marketed byWilliams throughout the Southeast region’s wholesale power market.Terms of the agreement were not disclosed.
Tenaska, Williams Form Generating Partnership
Tenaska Alabama Partners LP announced it has executed a fuelconversion services agreement with Williams’ energy marketing andtrading unit for the entire electrical production of the plannedTenaska Lindsay Hill generating station. Under the long-termservice agreement, the Tenaska facility will convert fuel owned andsupplied by Williams into electricity, which will be marketed byWilliams throughout the Southeast region’s wholesale power market.Both companies would not disclose the terms of the agreement or theprojected amount of gas the facility will consume.
Cross Timbers Shakes Up Portfolio
Cross Timbers Oil Co. executed a series of acquisitions, salesand closings last week in an attempt to tidy its portfolio andreduce debt. Through all the activity, the Texas-based producergained full control of Oklahoma City-based Spring Holdings Co. andclosed a previously announced $231 million deal with Ocean Energy.Cross Timbers said the net result of all this activity was anincreased reserve base, without deviation from its debt reductionplan.
Madison Gas and Electric Extends ANR Contract
Placing another brick in the apparent Chinese wall against Wisconsin pipeline challengers, ANR Pipeline Co. (ANR) executed agreements with the state’s Madison Gas and Electric Co. (MGE) to extend gas transportation and storage services that were to expire over the next four years. The agreements are subject to approval by the Public Service Commission of Wisconsin.