Canadian producers expect their natural gas prices to rise by asmuch as 60% when the next heating season catches up with effects ofthe 1998-99 drilling slump.
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Westcoast Sells Manitoba LDC
Westcoast Energy, a partner in more venturesome natural gasprojects, announced it has sold wholly-owned subsidiary Centra GasManitoba to Manitoba Hydro for $245 million.
El Paso Takes 50% Stake in CalEnergy Power Company
In an effort to smooth the way for FERC approval of its mergerwith MidAmerican, CalEnergy sold a 50% stake in power generationsubsidiary CE Generation LLC to El Paso Energy last week for $259.6million, including $236.1 million in cash and $23.5 million in debtand other payments. CE Generation is the holding company for 14U.S. power plants with capacity to produce 896 MW of electricity.
Leviathan Becomes an El Paso GOM Gatherer
Attempting to consolidate its offshore pipeline assets under onecompany, El Paso Energy Corp.’s El Paso Field Services sold itsinterest in an offshore gathering system to Leviathan Gas PipelinePartners L.P. for $85.26 million in cash and stock exchanges. ElPaso will receive $63.945 million in Leviathan stock, improving itsholding interest in the company from 27.3% to 34%. The sale of theViosca Knoll Gathering Co. (VKGC) still needs to be approved byLeviathan’s board of directors. El Paso said the deal will beratified by March 31 and that no employees will be affected.
CanadianOxy Sells Assets to Combat Low Prices
Canadian Occidental Petoleum Ltd., an independent global energyand chemical company, sold oil and gas properties worth $370million in order to take the bite out of low commodity prices, thecompany said Wednesday. This brings CanadianOxy’s 1998 propertysales to $630 million. The company did not disclose who bought theproperties. An additional $235 million of sales are expected beforethe end of January 1999.
GPU Deal Makes Sithe Biggest U.S. IPP
New Jersey utility holding company GPU Inc. has sold itsnon-nuclear generating assets for $2.62 billion – 2.5 times bookvalue or $510 per kilowatt. The majority of generating assets werebought by French- and Japanese-owned Sithe Energies Inc. of NewYork City, which bought assets in New Jersey, Pennsylvania andMaryland. The deal will make Sithe the largest U.S. independentpower producer.
El Paso Exits NrG Partnership
El Paso Energy sold its 25% interest in NrG Information Servicesto NrG’s remaining partners, NOVA Gas Transmission., TransCanadaPipeLines, and Westcoast Energy. “This decision allows El PasoEnergy to continue focusing on its core businesses, includingnatural gas transmission, gas gathering and processing, energymarketing, and international project development,” said Graciela E.Martinez, El Paso vice president.
PG&E Sells Australian Assets to Duke
In a move to renew PG&E Corp.’s focus entirely on NorthAmerican markets, the utility holding company sold its natural gastransmission pipeline, related facilities and energy tradingoperations in Queensland, Australia to Duke Energy International,LLP.
Dynegy Sells Haynesville Plant to Duke
Dynegy Inc. (formerly NGC Corp.) sold its Haynesville, LA, gasprocessing and fractionation facility and related gas and gasliquids pipeline systems to Duke Energy Field Services. The sale ofthe non-strategic asset continues the rationalization of certaingas processing plants acquired from Trident and Chevron, which hasresulted in greater operating efficiencies and lower costs, Dynegysaid.
Wave of Power Plant Sales to Continue
The 35,000 MW of power generation that already has beenidentified to be sold in the next 18 months is not just a one-timefluke in the power market. It’s the beginning of a process thatwill continue for years to come, according to Siemans Corp.’s DavidL. Hartman, director of corporate development.