TransCanada Pipelines Ltd is on the move again. A week ago thecompany’s power subsidiary purchased Westcoast Energy’s interests infive Canadian cogeneration plants in a deal valued at C$512million. This week, its midstream subsidiary is selling its naturalgas gathering and processing assets in Saskatchewan to newcomer VISTAMidstream Solutions Ltd (see Daily GPI, Sept. 8).

Calgary-based VISTA acquired 100% interests in Freefight andCrane Lake gas plants, as well as interests in over 500 Km ofassociated gathering systems. The two processing plants have acapacity of about 27 MMcf/d and are located approximately 80 Kmwest of Swift Current, SK. VISTA has hired Burlington ResourcesCanada Energy Ltd. to operate the assets on the company’s behalf.

“This acquisition adds a solid, low risk stream of earnings toVISTA during our early growth stage. These are ideal assets forbalancing the risk profile of VISTA’s portfolio of gas gatheringand processing assets in Western Canada,” said Michael Dilger, vicepresident, finance & business development of VISTA.

The midstream asset sale is the latest maneuver in TransCanada’s $3billion divestiture plan instituted by CEO Doug Baldwin lastDecember. The plan, which is almost complete now, involves getting outof non-core businesses to free up capital to pay off debt (see DailyGPI, Dec. 9, 1999).

“With the midstream [VISTA sale], we are getting close to thedivestiture of most of our midstream businesses now, and weanticipate that most of those will be sold by the end of this year,as with most of our international assets, Cancarb [business] andExpress Pipeline system,” said TransCanada spokesman Glenn Herchak.”We have agreements to sell, or we have sold approximately $2.8billion worth of non-core assets. We are closing in on the $3billion mark.”

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