Group

A partnership between Sempra Energy International and PublicService Enterprise Group (PSEG) won approval from the board ofdirectors for Chilquinta S.A. to buy Chilquinta Energia, for $830million, Chilquinta announced Tuesday. Chilquinta Energia isChile’s third-largest electricity supplier, serving 405,000customers. Along with Chilean electricity supply, the Sempra – PSEGpartnership would acquire Energas, a Chilean natural gasdistribution company. Energas began service in May of 1998 andplans to reach 50,000 customers by 2003. Both Sempra and PSEG saidthe deal will progress their Latin America growth strategies andlook forward to entering into the Chilean electric market, whichhas grown 8% each year since 1991, compared to 1%-2% in the U.S.The deal is contingent on the buyers’ review and approval ofschedules for the definitive stock purchase agreement. Both Sempraand PSEG expect the purchase to be accretive in 1999. The $830million would net 90% of Chilquinta Energia’s stock for thepartnership. Upon final acquisition, Sempra and PSEG will be ableto make a tender offer to acquire the remaining 10 percent ofChilquinta Energia shares from other shareholders.

Panda Energy International Inc. and PSEG Americas, part ofPublic Service Enterprise Group, announced 50-50 joint ventureTexas Independent Energy to develop and operate high efficiency,low-cost electric power generating plants in Texas.

In an effort to grow its nonregulated business sector, ColumbiaEnergy Group’s Columbia Propane Corp. recently announced a tenderoffer to acquire National Propane Partners for $80.4 million. Theoffer expires April 9. National Propane shareholders will vote inearly May.

Columbia Energy Services, the nonregulated gas and electricmarketing subsidiary of Columbia Energy Group, signed a deal Mondayto supply many of the Eckerd Corp.’s drugstores with gas andelectric management. No terms of the deal were released.

Panda Energy International Inc. and PSEG Americas, part ofPublic Service Enterprise Group, announced 50-50 joint ventureTexas Independent Energy to develop and operate high efficiency,low-cost electric power generating plants in Texas.

Semco Energy Inc. sold Semco Energy Services, its natural gasmarketing arm, to MCN Energy Group only weeks after announcingintentions to exit the gas marketing side of its business. Nofinancial terms of the deal were disclosed except that Semcoexpects to record a gain on the sale and the companies expect thetransaction to close by the end of March.

A group of producers and marketers said it backs the “general[policy] objectives” on offshore regulation that were espoused byEnergy Secretary Bill Richardson in a letter to FERC last month,but stresses that debate over the “key issue” of the jurisdictionalstatus of offshore natural gas pipelines involves “a legal, not apolicy” matter.

Low commodity prices and industry belt-tightening picked off theRocky Mountain Oil & Gas Association (RMOGA). The trade groupsaid it will shut its doors June 1. The move comes amidreorganization of the American Petroleum Institute (API) andfollows talk last year of combining the Natural Gas SupplyAssociation with API. Clearly, the pressure is on to cut costs, andtrade association dues paying has become less of a priority.

Semco Energy Inc. sold Semco Energy Services, its natural gasmarketing arm, to MCN Energy Group only weeks after announcingintentions to exit the gas marketing side of its business. Nofinancial terms of the deal were disclosed except that Semcoexpects to record a gain on the sale and the companies expect thetransaction to close by the end of March.