“The combination of Westcoast Energy’s strategically placed assets in growing supply regions with our merchant skills and desire to be a leader in the development of new transportation infrastructure will strengthen our ability to connect energy supply and energy markets in Canada and the United States.
“The Westcoast Energy board of directors fu1ly supports this combination,” said Michael E. J. Phelps, chairman and chief executive officer of Westcoast. “The bid represents a significant premium to our recent share price.”
When the acquisition is completed, Westcoast Energy’s natural gas assets will be operated by Duke Energy Gas Transmission, Houston, TX, while the energy services and international businesses will be operated by Duke Energy’s Energy Services business units.
The combined natural gas-related assets are reported to include approximately 18,900 miles of transmission pipeline; 241 billion cu ft of natural gas storage; 58,700 miles of gathering pipeline; 84 processing facilities; and 16,500 miles of distribution pipeline.
In addition to its wholly owned pipeline systems, the combined firm will have ownership interests in the Maritimes & Northeast Pipeline (75%), Gulfstream Natural Gas System (50%), Foothills Pipe Lines (50%), Vector Pipeline (30%), and Alliance Pipeline/Aux Sable (23.6%). The Canadian operations will remain headquartered in Vancouver.
Publication date: 10/08/2001