Nova Chemicals Corp. used its first-refusal right to acquire Dow Chemical Canada Inc.'s 32.5% interest in Cochin Pipeline Co., which it then agreed to sell to Kinder Morgan Energy Partners LP, company officials said this week. None of the details of either acquisition was disclosed.
However, the purchase is subject to rights of first refusal from other Cochin Pipeline partners, as well as regulatory approval.
Cochin Pipeline Co. owns the Cochin Pipeline System, consisting of 1,900 miles of 12-in. pipeline that transports high vapor pressure ethane, ethylene, propane, butane, and natural gas liquids to the midwestern United States and eastern Canadian petrochemical and fuel markets. The 112,000 b/d capacity system transverses three provinces in Canada and seven states in the US.
Other partners in the pipeline include BP, Conoco Inc., and Royal Dutch/Shell Group.
The proposed acquisition, valued between $100 and $150 million, will enable KMP to gain a foothold in the Western Canadian sedimentary basin. That basin will play an integral role relative to the future supply of natural gas and gas liquids to North America, said Richard D. Kinder, KMP chairman and CEO.
When this and other previously announced acquisitions are closed, KMP will have purchased more than of $750 million worth in assets during 2000, and expects additional acquisitions between now and yearend.