By the OGJ Online Staff
HOUSTON, Jan. 31 -- Dynegy Inc. Thursday closed its acquisition of Northern Natural Gas (NNG) from Enron Corp.
Dynegy exercised its rights to acquire the common equity of NNG's parent after termination of its merger agreement with Enron, through which Dynegy invested $1.5 billion to acquire preferred stock and other rights in an Enron subsidiary that owns NNG. Enron has the option to repurchase the pipeline from Dynegy until June 30.
Dynegy named Daniel Dienstbier president of the pipeline. He will report to Dynegy Inc. Pres. and COO Steve Bergstrom and will continue to serve as an unpaid member of Dynegy's board.
Dienstbier has more than 30 years of experience in the oil and gas industry. He held various executive positions at NNG, including president, before being named president of Enron's Gas Pipeline Group in 1985. In 1988 Dienstbier became president and CEO of Dyco Petroleum Corp. and executive vice-president of Diversified Energy in Minneapolis. He served as president of Jule Inc., a private company involved in energy consulting and joint venture investments in the pipeline, gathering, and exploration and production industries from February 1991 through June 1992; he was president and CEO of Arkla Inc., from July 1992 through October 1993; and he was president and COO of American Oil & Gas Corp. from October 1993 through July 1994. Dienstbier has been a member of Dynegy's board of directors since 1995.
NNG provides transportation and storage services to customers and cross-haul and grid transportation between other interstate and intrastate pipelines in the Permian basin, Anadarko basin, Hugoton, and Midwest areas.
NNG's 16,600 miles of pipeline extend from the Permian basin in Texas to the Upper Midwest, providing extensive access to major utilities and industrial customers. NNG's storage capacity is 59 bcf and its market area capacity is 4.3 bcfd.
Enron will provide transition services related to the pipeline through June 30.