Recent History – 1998
By Daily News Staff, Dec. 18, 1998
Westcoast Energy Inc. has increased its stake in the Alliance Pipeline Project to about 23.6 per cent, the company said in a press release Thursday.
Westcoast signed a letter of agreement to purchase an additional 9.1 per cent interest in the project from Unocal Corporation. Westcoast’s total equity commitment in the Alliance project now approximates $500 million.
The Alliance Pipeline Project is a 3,100 kilometre pipeline that will move some 1.325 billion cubic feet per day of natural gas from northeastern B.C. and northern Alberta to the Chicago area market for distribution throughout North America. The pipeline is scheduled to be in service in the second half of the year 2000.
Westcoast entered the project in September 1997 by taking an 11 per cent equity interest in the project. It increased its equity participation to 14.5 per cent in January 1998 by purchasing a portion of an interest of another equity holder.
Westcoast chair and CEO, Michael Phelps, said the Alliance project has received all of the necessary Canadian and U.S. approvals to proceed with construction. Also, he said, it is almost fully subscribed by shippers with 15-year term agreements.
Vancouver-based Westcoast Energy Inc. is a North American energy company with assets of more than $10 billion. Its interests include natural gas gathering, processing and transmission and natural gas storage facilities.