TransCanada buying Gas Transmission Northwest

Feb. 25, 2004
TransCanada Corp., Calgary, agreed to buy Gas Transmission Northwest Corp. (GTN) for $1.7 billion.

By OGJ editors
HOUSTON, Feb. 25 -- TransCanada Corp., Calgary, agreed to buy Gas Transmission Northwest Corp. (GTN) for $1.7 billion, including $500 million of assumed debt and subject to typical closing adjustments.

GTN is a subsidiary of National Energy & Gas Transmission Inc. (NEGT), Bethesda, MD, which filed for protection under Chapter 11 bankruptcy in July 2003. Last year the bankruptcy judge approved of the NEGT name to reflect its pending separation from its parent, PG&E Corp.

The sale of GTN to TransCanada is subject to bankruptcy court approval, and will include a court-sanctioned auction process in accordance with customary bidding procedures approved by the bankruptcy court.

GTN is a natural gas pipeline company that owns and operates the Gas Transmission Northwest pipeline system, formerly known as Pacific Gas Transmission, and the North Baja pipeline system.

The Gas Transmission Northwest pipeline system consists of more than 1,350 miles of pipeline extending from a point near Kingsgate, BC, to a point near Malin, Ore., on the Oregon-California border.

The North Baja pipeline is an 80-mile system extending from a point near Ehrenberg, Ariz. to a point near Ogilby, Calif. The sale of the North Baja pipeline is subject to a right of first refusal by another company.

Under a court-sanctioned auction, NEGT will seek offers that are higher or otherwise better than that which has been negotiated with TransCanada.