Enbridge Completes Acquisition of Williams Interest in Alliance Pipeline

abarrelfullabarrelfull wrote on 10 May 2012 20:05

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October 30, 2002

Enbridge Inc. today announced that it has completed the acquisition of an approximately 9.6% interest in the Alliance Pipeline from The Williams Companies Inc. for approximately Cdn$179 million. The purchase does not include the Williams interest in the Aux Sable NGL plant, which processes all gas transported on the Alliance Pipeline, and Enbridge has not assumed any of Williams' natural gas transportation commitments in the pipeline. As a result of the acquisition, Enbridge has increased its interest from approximately 21.4% to approximately 31.0%.

As previously announced, Enbridge also expects to acquire an approximately 7.2% interest in the Alliance Pipeline from El Paso Corporation for approximately Cdn$127 million. That transaction, which is expected to close in the fourth quarter of 2002 except for a small portion which will be deferred until the first quarter of 2003, is expected to bring Enbridge's interest in the Alliance Pipeline up to approximately 38.2%, which is expected to be equal to that of the other largest owner, Fort Chicago Energy Partners.

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.

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