Canadian Press: Enbridge completes $US613M acquisition of Shell Gulf of Mexico offshore pipelines: “Enbridge Inc. said Monday it has completed the purchase of a major pipeline system in the Gulf of Mexico from a unit of global energy giant Royal Dutch-Shell. The Calgary energy services company (TSX:ENB) announced that its wholly owned U.S. subsidiary had finalized the purchase of Shell Gas Transmission LLC for $613 million US plus working capital.” (ShellNews.net) 4 Jan 05
CALGARY (CP) - Enbridge Inc. said Monday it has completed the purchase of a major pipeline system in the Gulf of Mexico from a unit of global energy giant Royal Dutch-Shell.
The Calgary energy services company (TSX:ENB) announced that its wholly owned U.S. subsidiary had finalized the purchase of Shell Gas Transmission LLC for $613 million US plus working capital.
The deal, announced in the latter part of 2004, closed New Year's Day.
The U.S. pipeline operator was formerly owned by Shell US Gas & Power LLC, a subsidiary of Royal Dutch-Shell, the European-based global oil and gas giant that also controls Shell Canada Ltd. of Calgary.
The newly acquired Gulf of Mexico offshore assets include ownership stakes in 11 transmission and gathering pipelines in five major pipeline corridors that ship about three billion cubic feet of gas a day. Enbridge said the 2,380 kilometres of pipelines transport about half of all the deepwater natural gas produced in the Gulf of Mexico.
The Canadian company said the deal will help it supply proposed new U.S. coastal plants designed to convert liquefied natural gas shipped by pipelines or tankers from the Gulf, Europe, Africa and Asia to meet energy demands in North America.
"The successful acquisition of these strategic offshore Gulf assets underlines our commitment to organic growth and to being one of the nation's leading energy transporters," said Dan Tutcher, Enbridge's group vice-president for the company's southern pipeline systems.
"We are now well positioned to move much of the developing deepwater gas supply and to accommodate the potential transport needs of several proposed LNG re-gasification projects.
In Canada and the U.S., Enbridge operates the world's longest crude oil and liquids pipeline and owns natural gas transmission and midstream gas processing businesses.
The Calgary company also owns and operates Canada's largest natural gas distributor, the former Consumers Gas Ltd., which has operations in Ontario, Quebec, New Brunswick and New York state.
Enbridge employs about 4,000 people, primarily in Canada, the U.S. and South America.
http://www.canada.com/businesscentre/story.html?id=d9d817bc-fe66-4f27-8cbd-ae40a224a5ab
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