Following through on a cost-cutting initiative begun in 1999 under another CEO, Calgary-based TransCanada PipeLines Ltd. on Friday said it has reached an agreement to sell some of its natural gas marketing and trading operations to BP Gas & Power. Included in the sale is CanStates Gas Marketing, a contract to manage gas supply assets for SEMCO Energy Gas Co., and the marketing and trading operations in its Omaha, NE office. Financial details were not disclosed.
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TransCanada Sells Gas Marketing, Trading To BP
Following through on a cost-cutting initiative begun in 1999 under another CEO, Calgary-based TransCanada PipeLines Ltd. on Friday said it has reached an agreement to sell some of its natural gas marketing and trading operations to BP Gas & Power. Included in the sale is CanStates Gas Marketing, a contract to manage gas supply assets for SEMCO Energy Gas Co., and the marketing and trading operations in its Omaha, NE office. Financial details were not disclosed.
TransCanada Scrambling for Volumes, Revenues
TransCanada PipeLines’ fast action last week in replacing its support for Millennium Pipeline — for the time being at least — with a less environmentally challenged new export route to the northeastern United States is just the latest action in the pipeline company’s campaign to drum up increased traffic or raise its rates to cover what it calls the costs of competition.
TransCanada Scrambling for Volumes, Revenues
TransCanada PipeLines’ fast action last week in replacing the abandoned Millennium Pipeline proposal — for the time being, at least — with a less environmentally-challenged new export route to the northeastern United States, is just the latest action in the pipeline company’s campaign to drum up increased traffic or raise its rates to cover what it calls the costs of competition.
Industry Briefs
The National Energy Board (NEB) will hold a public hearing on an application from TransCanada PipeLines Limited concerning 2001/2002 tolls and tariff issues. The NEB said the public hearing will commence on Aug. 20. Written interventions must be filed with the board by July 10. The need for a hearing began in April of this year when TransCanada and certain stakeholders reached an agreement on the terms of a settlement. The proposed settlement related to all tolls and tariff matters for the years 2001 and 2002, excluding cost of capital issues. The NEB said the settlement became effective on the first of January and established a toll methodology to be utilized for both 2001 and 2002, tariff provisions to be applicable in that time period, and the components of the revenue requirement (other than cost of capital) to be used in the calculation for final tolls for 2001. On June 6, TransCanada filed an application for the approval of the cost of capital to be included in the calculation of its mainline tolls for the years 2001 and 2002. The board said it will announce at a later date the process for dealing with that application. In May, the board had requested comments from interested parties on the substance of the tolls application as well as the need for and nature of a further process. The board decided that TransCanada’s settlement was not in accordance with the board’s guidelines for negotiated settlements of traffic, tolls and tariffs. The board directed TransCanada to advise whether it wished to file an amended application or have the board treat the application as a common position of parties. TransCanada advised the board that, after communicating with all of the signatories to the proposed settlement, it had decided not to file an amended application and requested that the board establish a process to consider the application as filed. For further information on the Aug. 20 hearing visit the NEB’s web site at www.neb-one.gc.ca.
NEB, TransCanada Working on Tax Cuts
An attempt to score a quick tax-cut coup is stretching out into a federal case for TransCanada PipeLines Ltd., with governments that stand to lose the money being offered a chance to put up a fight. The National Energy Board has put off deciding even whether it has to approve the action until TransCanada explains itself much more fully. At the same time, the NEB is working on a procedure for collecting reactions by the provincial governments which stand to lose money as a result of the scheme. All have been officially informed by the board.
Kinder, Calpine Waste No Time on Sonoran Pipeline
With so many proposed new pipelines and expansions in the works to serve the wild demand growth in California, Kinder Morgan Energy Partners LP and Calpine Corp. wasted no time last week in marketing space on their massive $1.7 billion gas pipeline project, which was announced last week (see Daily GPI, May 3). The companies launched an open season on Monday to take binding market requests for service through June 1 on their 1,030-mile Sonoran Pipeline.
TransCanada Axes Gas Marketing Business
TransCanada PipeLines Limited announced late Tuesday that it plans to divest its natural gas marketing business in order to focus on its core natural gas transmission and power businesses in Canada and the northern tier of the United States. The news came almost a year-and-a-half after the company embarked upon a $3.45 billion divestiture program as part of a strategic restructuring (see Daily GPI, Dec. 9, 1999; Oct. 13, 2000).
TCPL’s Asset Divestiture Target Rises $450 M
TransCanada PipeLines Ltd. (TCPL) reported yesterday that it nowexpects proceeds from its non-core asset divestiture program torise from the previous estimate of $3 billion to $3.45 billion. Asa direct result of this, the company expects to record a positive$200 million after-tax adjustment to last year’s provision fordiscontinued operations in the third quarter of 2000.
Kinder, Calpine Waste No Time on Sonoran Pipeline
With so many proposed new pipelines and expansions in the works to serve the wild demand growth in California, Kinder Morgan Energy Partners LP and Calpine Corp. wasted no time this week in marketing space on their massive $1.7 billion gas pipeline project, which was announced last week (see Daily GPI, May 3). The companies launched an open season yesterday to take binding market requests for service through June 1 on their 1,030-mile Sonoran Pipeline.