BP Acquires North American Natural Gas Marketing and Trading Assets
25-Sep-2001
BP gas and Power North America today announced it has agreed to
purchase a set of natural gas marketing and trading assets from TransCanada
PipeLines Limited. The assets include Cibola Energy services Corporation, an Omaha
based natural gas marketing and trading company that has an extensive
transportation, storage and customer portfolio in the U.S. Midwest and Mid Continent.
The acquisition will further establish BP as a leader in the North American energy
marketing and merchant business while significantly enhancing its core role as a
premier supplier of energy products and services.
BP will also acquire a number of transportation contracts on TransCanada’s Alberta
System and Mainline and on Foothills Pipe Lines and CanStates Marketing, an Alberta
supply aggregation business. TransCanada will also assign to BP the contracts
related to the management of assets and supply to SEMCO Energy Gas Company.
SEMCO is a Michigan based utility serving over 250,000 customers. The acquisition
includes natural gas sales of approximately 1.6 billion cubic feet per day.
Said Brian Frank, President of BP Gas & Power Canada: “This transaction is another
important step in the development of our gas marketing and trading business in
North America because it will expand our energy product marketing presence into
new areas. We will also have the benefit of additional assets in order to serve our
existing customer base, as well as access to new customers in Canada, the U.S.
Pacific Northwest, Midwest and Northeast.”
He added: “Cibola has an excellent reputation for customer service and we intend to
build upon that. BP intends to retain the Omaha-based employees involved in the
transaction. We believe they will be an integral part of BP’s growth strategy for the
region.”
The transaction is scheduled to close in the fourth quarter and is subject to a number
of terms and conditions including regulatory approval in Canada. Terms of the
agreement were not disclosed.
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