TransCanada Midstream (TCM), a business unit of TransCanadaPipeLines Ltd., bought Alberta Energy Co.’s (AEC) outstandingshares (49.995%) in PanAlberta Resources Inc. (PARI) for $35million plus about $7 million in assumed debt. PARI owns 50% of theEmpress II straddle plant and holds gas liquids extraction rightswith respect to gas volumes of Pan-Alberta Gas Ltd.
“The purchase of the outstanding shares in PARI consolidates andstrengthens our position in the Empress Natural Gas Liquids (NGLs)complex,” said Randy Findlay, TransCanada senior vice president. Atthe Empress site TCM currently has 2.5 BCF/d of processing capacitywith another 500 MMcf/d of capacity under construction.
TransCanada spokesman Gary Davis said there are two issuesdriving the acquisition. “One is consolidation of our ownershipinterest in the Empress II plant, which is the largest and lowestcost facility in that Empress complex. It just was anadministrative hassle to continue as a minority shareholder, and wehad an opportunity to purchase AEC’s interest in the plant.
“The other thing is a desire to strengthen our position inethane. In the near-term we see some opportunities in ethane thatwe can take advantage of. There’s a lot of development that’soccurring in Alberta in particular.”
Joe Fisher, Houston
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