AltaGas acquires two pipeline systems from TransCanada

AltaGas Services Inc., Calgary, has closed the purchase of the Porcupine Hills Pipeline and has agreed to acquire the Kahntah pipeline, both from TransCanada PipeLines Ltd., for a total cost of $15.8 million (Can.). AltaGas will assume operation of the facilities.


AltaGas Services Inc., Calgary, has closed the purchase of the Porcupine Hills Pipeline and has agreed to acquire the Kahntah pipeline, both from TransCanada PipeLines Ltd., for a total cost of $15.8 million (Can.). AltaGas will assume operation of the facilities.

The Porcupine Hills pipeline transports condensate from a gas plant in Waterton, Alta., owned by a unit of Royal Dutch/Shell Group to a pipeline terminal at Turner Valley in southwestern Alberta owned by a unit of Koch Industries Inc. It is a 164-km, 152-mm pipeline with two pump stations.

The pipeline has a design capacity of 11,650 b/d; current throughput is 4,120 b/d. AltaGas said contractual arrangements will provide for guaranteed operating income and steady cash flow through October 2006.

The Kahntah pipeline, a 55-km, 324-mm gas pipeline located 240 km north of Fort St. John, BC, transports sweet gas from Anderson Exploration Ltd.'s Kahntah gas plant in British Columbia to the TransCanada pipeline network at Snowfall Creek in Alberta. Operating capacity of the pipeline is 35 MMcfd at the current inlet pressure of 1,200 psi, and 95 MMcfd at 1,440 psi. Current throughput is only 5.2 MMcfd.

AltaGas said its investment in Kahntah is underpinned by a take-or-pay commitment that expires in 2005 and by 1,550 sq m of dedicated lands. Closing of this acquisition is expected by the end of August.

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