By OGJ editors
HOUSTON, Nov. 1 -- Calgary-based Enbridge Inc. has completed the acquisition of 9.6% interest in Alliance Pipeline from Williams Cos. Inc. for $179 million (Can.). Tulsa-based Williams last month announced that it would sell its 14.6% ownership interest in the Canadian and US portions of the 1,900 mile pipeline system (OGJ Online, Oct. 2, 2002). Fort Chicago Energy Partners LP (FCEP), another Alliance Pipeline interest holder, exercised its right of first refusal and picked up Williams's other 5% interest in the line, which extends from Fort St. John, BC, to Chicago.
Enbridge expects to acquire a 7.2% interest in Alliance from El Paso Corp. of Houston for $127 million (Can.). El Paso previously agreed to sell its 14.4% interest in the system, including its ownership in the Aux Sable natural gas liquids plant. Enbridge expects El Paso's remaining 7.2% interest in the line and NGL plant to be acquired by FCEP.
Following the close of the latest transaction, Alliance will be held by Enbridge and FCEP, each with 38.2%, and Duke Energy Corp., Charlotte, NC, with 23.6%.
The majority of the El Paso sale is expected to close by yearend, Enbridge said, adding that the remainder of the transaction is expected to close in early 2003.
El Paso said it would use sale proceeds to repay outstanding debt. "This transaction represents another important step in El Paso's plan to reduce debt and strengthen our balance sheet," said William A. Wise, El Paso chairman and CEO.