TransCanada PipeLines Ltd. cashed in another large assetyesterday in its $3 billion divestiture program by sellingNorthridge Petroleum Marketing Ltd. (NPML) to CXY Energy Marketing,a subsidiary of Canadian Occidental Petroleum Ltd., for $40million, which includes working capital. The sale is expected toclose by the end of July.

NPML markets and trades Canadian crude oil and refined products.The sale also includes TransCanada Energy Marketing USA Inc.’scrude oil marketing operations in Denver. NPML was one of theNorthridge group of companies acquired by TransCanada in 1994.TransCanada said proceeds from the sale are in line with thecompany’s expectations.

“This sale bodes well for the steady progress TransCanadacontinues to make on its divestiture program,” said TransCanada CEODoug Baldwin. “We remain on track to meet our $3 billiondivestiture target, with sales to date totaling more than $1billion.”

The sale of NPML is part of TransCanada’s $3 billion divestitureprogram, which was announced last December (see Daily GPI, Dec. 9,1999; June 20, 2000). The program is aimed at paying down debt bygetting rid of some of its widely scattered unregulated assets andstrengthening financial flexibility so the company can focus on itscore areas of pipeline transmission, power generation and gasmarketing. TransCanada continues to be under significantcompetitive pressure from its new rival, Alliance Pipeline, andother new comers such as Maritimes & Northeast Pipeline. It isexpecting a significant amount of its long-haul firm transportationcapacity to be unsigned in October with the start of the competingAlliance project, a 1.325 Bcf/d gas line from British Columbia andnorthern Alberta to Chicago that is being built to bypass Nova,TransCanada, Foothills and Northern Border (see Daily GPI, May 8;July 10).

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