National Post (Canadian Press): Enbridge paying US$613M for Shell natural gas pipelines in Gulf of Mexico: “CALGARY (CP) - Energy distributor Enbridge Inc. is getting bigger with a $613-million-US purchase of Shell Gas Transmission and its natural gas pipeline network in the Gulf of Mexico.” (ShellNews.net) 17 Nov 04
Wednesday, November 17, 2004
CALGARY (CP) - Energy distributor Enbridge Inc. is getting bigger with a $613-million-US purchase of Shell Gas Transmission and its natural gas pipeline network in the Gulf of Mexico.
SGT has ownership interests in 11 pipelines in five major corridors that transport about half of all deep-water natural gas production in the Gulf, Calgary-based Enbridge (TSX:ENB) said Wednesday.
The deal, involving subsidiary Enbridge (U.S.) Inc. and Shell US Gas & Power LLC, is expected close by year-end, subject to regulatory approvals and other conditions.
The transaction "immediately establishes Enbridge as a major natural gas transporter in the Gulf - one of the key regions for continental supply growth and an area with significant potential for undiscovered natural gas reserves," Enbridge CEO Patrick Daniel said in a release.
It provides us with a new growth platform with good upside potential, and is financially and strategically attractive. The acquisition is consistent with our strategies of increasing our North American natural gas transmission assets, and of focusing on fee-based energy transportation and service infrastructure. We expect to fund the acquisition with existing liquidity and credit capacity, and we expect that it will be accretive to earnings by up to Cdn$0.14 per share in 2005." Enbridge operates, in Canada and the United States, the world's longest crude oil and liquids transportation system. It also has international operations and a growing involvement in the natural gas transmission and midstream businesses.
As a distributor, Enbridge owns and operates Canada's largest natural gas distribution company and provides distribution services in Ontario, Quebec, New Brunswick and New York state.
© The Canadian Press 2004