Alberta Energy Co. Ltd., Calgary, said it has agreed to acquire the 50% interest in the Express Pipeline and the Platte Pipeline (known together as the "Express Pipeline system") that it does not already own from TransCanada PipeLines Ltd.
AEC will also acquire TCPL's 50% interest in two partnerships which were formed to act as shippers on these pipelines. The purchase price is about $90 million plus the assumption of $295 million in debt.
The agreement provides an option for AEC to satisfy the $90 million price by issuing common shares.
TCPL had been planning to sell the Express system, which has capacity to transport 172,000 b/d of oil from Alberta to Wyoming, for some time. The divestiture is part of a company restructuring that is expected to net $3 billion (OGJ, Dec. 20, 1999, p. 32).
The sale is expected to close in early November and is subject to regulatory approval.