BLOOMBERG: Enbridge to Buy Shell's Gulf Pipelines for $613 Mln (Update1): “Canada's second- largest pipeline company, agreed to buy Shell Gas Transmission LLC for $613 million to gain pipelines in the Gulf of Mexico for the first time.”: “Royal Dutch/Shell, based in London and The Hague, plans to sell as much as $12 billion of assets in two years to fund investments and return cash to shareholders.” (ShellNews.net) 17 Nov 04
Nov. 17 (Bloomberg) -- Enbridge Inc., Canada's second- largest pipeline company, agreed to buy Shell Gas Transmission LLC for $613 million to gain pipelines in the Gulf of Mexico for the first time.
The purchase will provide stakes in pipelines that carry about half of all deepwater gas production in the Gulf, Calgary- based Enbridge said in a statement. The Royal Dutch/Shell Group unit owns or has an interest in 11 transmission and gathering pipelines in five corridors with a landed capacity of about 4.7 billion cubic feet per day, the companies said.
Enbridge said the purchase will add as much as 14 Canadian cents (12 cents) per share to 2005 profit and is expected to close this year, subject to regulatory approvals.
The 1,482-mile (2384-kilometer) Shell system includes a 50 percent stake in the Stingray and Nautilus pipelines, 80 percent of the Garden Banks pipeline, the Mississippi Canyon pipeline, a third interest in the Destin pipeline and six systems that connect to production platforms in water 1,000 feet deep or greater.
Royal Dutch/Shell, based in London and The Hague, plans to sell as much as $12 billion of assets in two years to fund investments and return cash to shareholders.
The announcement was made before the opening of regular trading on North American markets. Shares of Enbridge rose 14 cents to $44.19 yesterday in New York Stock Exchange composite trading. Shares of Royal Dutch Petroleum, which owns 60 percent of the Royal Dutch/Shell Group, fell 2 cents to 42.80 euros in Amsterdam.
(Enbridge executives will hold a conference call to discuss the purchase at 9 a.m. New York time at (1)(877) 295-2825 and broadcast on the Internet at http://www.enbridge.com/investor .)
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