Officially

El Paso Corp. officially launched its friendly C$347 million ($228 million) bid for Calgary’s Velvet Exploration Ltd. on Thursday, which, when completed, would give the Houston-based producer about 172 Bcfe more in net reserves, 59% natural gas, in the highly sought after Western Canadian Sedimentary Basin. The acquisition was announced earlier this month (see Daily GPI, June 15).

Conoco Northern Inc., a subsidiary of Houston-based Conoco Inc., officially launched its friendly takeover bid for Gulf Canada Resources Ltd. on Friday, tendering a cash offer that would pay the Calgary-based company C$12.40 per share in a deal worth $4.3 billion (C$6.7 billion). The two companies agreed to the sale in May (see NGI, June 4), and Conoco’s offer will expire on July 13.

Conoco Northern Inc., a subsidiary of Houston-based Conoco Inc., officially launched its friendly takeover bid for Gulf Canada Resources Ltd. on Friday, tendering a cash offer that would pay the Calgary-based company C$12.40 per share in a deal worth $4.3 billion (C$6.7 billion). The two companies agreed to the sale in May (see Daily GPI, May 30), and Conoco’s offer will expire on July 13.

Pipeline construction season has officially begun as two natural gas pipeline companies formally announced on Tuesday their new proposed projects for the Southeastern region’s gas needs. As Southern Natural Gas Co. unveiled its intentions to expand its Sonat system for the third time in the last year to supply incremental demand in Alabama, Georgia and South Carolina, Duke Energy Gas Transmission (DEGT) launched a month-long open season to determine market interest in a new natural gas supply and transportation option called the Alabama-Georgia Energy System.

After five years in the making, Alliance Pipeline officiallyopens for business today, adding 1.325 Bcf/d of new firmtransportation capacity from British Columbia and Alberta to theChicago gas market hub. The pipeline company held a grand openingceremony yesterday. “Our new, state-of-the-art pipeline systemprovides Western Canadian natural gas producers the opportunity toexpand their markets in both the Midwest United States and EasternCanada by offering them incremental transportation capacity througha real, competitive choice,” said CEO Norm Gish. “It will provideend-users in these market areas with a new supply conduit for thecleanest-burning hydrocarbon fuel. It will stimulate theexploration and producing sector in Western Canada resulting inenhanced business and employment opportunities in many communities.And, it will significantly contribute revenues to many governmentsdirectly in the form of taxes and indirectly in the form ofroyalties through increases in gas production.” COO Allan Edgeworthnoted that while the scale of the 2,300 mile system is significant,”it is only capable of transporting 10% of Alberta’s and BritishColumbia’s total gas production destined for export to eitherEastern Canada or the United States. The Alliance pipeline sponsorsinclude Coastal (14.4%), Enbridge (21.4%), Fort Chicago EnergyPartners LP (26.0%), Williams (14.6%) and Westcoast (23.6%).

While winter does not officially conclude for another threeweeks, it was laid to rest yesterday in the gas pit at Nymex as theMarch contract filtered lower in a long liquidation sell-off duringits last hour of trading. The March contract expired at $4.998,down 13.3 cents on the session and more than $1.10 less than whereit was when it became prompt month back on Jan. 29.

The Colorado Interstate Gas Co. officially filed a plan with theFederal Energy Regulatory Commission Dec. 4 to increase pipelinecapacity from its Cheyenne Hub area south to Front Range markets.CIG’s proposed $72 million expansion would include 84 miles of20-inch pipeline and two generators along the eastern slope of theRocky Mountains to a planned 480 MW power plant south of ColoradoSprings.

The BP Amoco and Atlantic Richfield Co. (ARCO) merger isofficially complete. BP Amoco will deliver to former ARCO holders,for each share of common stock owned, 1.64 American depositaryshares (ADS) of BP Amoco. Alternatively, if properly elected, ARCOcommon stock holders can receive BP Amoco ordinary shares. Cashwill be paid for fractional share interests. BP Amoco ADSs trade onthe New York Stock Exchange and other North American exchangesunder the symbol BPA with one ADS representing six ordinary sharestraded on the London Stock Exchange. Existing BP Amoco ADR holdersand existing ARCO preference stock holders do not need to take anyaction with respect to this transaction.

The merger between The National Grid Group and New EnglandElectric System (NEES) of Westborough, MA, is complete, and NEESofficially has been renamed National Grid USA. The deal wasannounced Dec. 14, 1998. The final sale price for the merger was$3.2 billion, and the final price of NEES shares was $54.207.