Northern Border Partners to buy some Wyoming Enron facilities
Northern Border Partners LP, Omaha, Neb., said Thursday it's buying Enron North America Corp.'s natural gas gathering facilities in Wyoming's Powder River and Wind River Basins for $200 million.
Northern Border Partners LP, Omaha, Neb., said Thursday it's buying Enron North America Corp.'s (ENA) natural gas gathering facilities in Wyoming's Powder River and Wind River Basins for $200 million.
Included in the purchase are Enron Midstream Services LLC, which holds an ownership interest in Bighorn Gas Gathering LLC, and the ENA subsidiaries that hold ownership interests in Fort Union Gas Gathering LLC and Lost Creek Gathering LLC.
ENA will continue to provide gas purchase and sales, finance, risk management and producer outsourcing services in the Powder River and Wind River Basins. Northern Border will own and operate physical assets and will provide gathering and transportation services.
"The transaction is further evidence of our commitment to grow and diversify our asset mix,'' said Larry DeRoin, chairman and chief executive officer of Northern Border. "The Powder River and Wind River basins offer us both growth opportunities and strong economics."
Fort Union owns an existing 106-mile gas gathering system in the Powder River basin. Lost Creek owns a 123-mile gas gathering system in the Wind River basin that is expected to be in service later this month. Bighorn owns an existing 92-mile gas gathering system in the Powder River basin with an additional 56 miles under construction.
The remaining ownership interest in Fort Union is held in varying percentages by subsidiaries of CMS Energy Services, Western Gas Resources Inc., Colorado Interstate Gas Co., and Barrett Resources Corp.
A subsidiary of Burlington Resources Inc. holds the remaining ownership interest in Lost Creek.
The interest in Bighorn adds to Northern Border's current ownership position. CMS Field Services Inc. holds the remaining ownership interest in Bighorn.