Enbridge Acquires El Paso Interest in Alliance November 22, 2002

abarrelfullabarrelfull wrote on 10 May 2012 13:53
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November 22, 2002

Enbridge Inc. today announced that it has closed the acquisition of an additional 6.1% interest in the Alliance Pipeline from the El Paso Corporation. Enbridge will also acquire an additional approximate 1.1% interest from El Paso in the Alliance Pipeline at the end of the first quarter of 2003.

Upon completion of both of these transactions, Enbridge will have increased its interest in the Alliance Pipeline to approximately 38.2% and will have increased its interest in the Aux Sable NGL plant and AC Marketing to approximately 30.9%, each of which will be equal to that of the other largest owner, Fort Chicago Energy Partners. Enbridge has not assumed any of El Paso's direct natural gas transportation commitments in the pipeline.

Enbridge will pay El Paso approximately Cdn$125 million for its interests in the Alliance Pipeline and the Aux Sable NGL Plant and AC Marketing interests.

The Alliance Pipeline is a 36-inch diameter pipeline with a capacity of 1,550 million cubic feet per day of natural gas. It extends 3000 kilometres from Fort St. John in British Columbia to Chicago, Illinois. It employs a "high pressure dense phase" technology to create higher transmission efficiency than traditional conventional gas transmission systems. Alliance commenced operations in late 2000. Enbridge was the first pipeline company to invest in Alliance and, in conjunction with a number of natural gas producers, seek to develop alternatives for accessing U.S. markets.

*Enbridge Acquires El Paso Interest in Alliance


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