TransCanada sells some gas marketing operations to BP Gas

By the OGJ Online Staff

HOUSTON, Sept. 21 -- TransCanada PipeLines Ltd., Calgary, said Friday it is selling certain natural gas marketing and trading operations to BP Gas & Power.

Included in the sale are CanStates Gas Marketing, the contract to manage gas supply assets for SEMCO Energy Gas Co., and the gas marketing and trading operations associated with TransCanada's office in Omaha, Neb.

The sale is expected to close in the fourth quarter, pending necessary regulatory approvals. Financial terms were not disclosed.

TransCanada plans to divest most of its gas marketing and trading operations, including its structured products business, and most of its gas transportation and storage contracts. Also included in the divestiture process is the netback pool business, which markets the aggregated supply from more than 500 Canadian gas producers.

"We are progressing towards a complete exit from the natural gas marketing and trading business," said Hal Kvisle, TransCanada's CEO. "Our carefully managed exit from this business is one more step toward achieving our goal to be the strongest and most profitable competitor in our core businesses of natural gas transmission and electric power."