In a move to strengthen its North American gas portfolio, the recently formed gas and power division of BP Amoco PLC bought for an undisclosed sum the shares in ProGas Ltd., Calgary, that it did not already own.
Last year, natural gas supplier and aggregator ProGas sold more than 500 bcf of gas, equivalent to 1.45 bcf/day (bcfd), in the North American market. The company buys gas from about 170 producers in the Western Canadian Sedimentary Basin.
BP Amoco is already North America's largest producer of natural gas, with an average output of 3.5 bcfd. The ProGas acquisition will take its total North American gas sales to 7 bcfd and its Canadian sales to 3 bcfd.
Richard Flury, chief executive of BP Amoco Gas & Power, said, "The new division aims to materially grow the BP Amoco group's gas and power interests in downstream markets around the world. The ProGas acquisition moves us into a position as one of North America's leading gas marketing businesses."