Oct. 11, 2002 — El Paso Corp. announced that it has agreed to sell its 14.4 percent interest in the Canadian and U.S. segments of the Alliance Pipeline, the Aux Sable natural gas liquids plant, and related entities to Enbridge Inc. for approximately $165 million.
El Paso and Enbridge have signed a purchase and sale agreement for the proposed transaction, which is subject to the customary conditions to closing, including obtaining regulatory approval and receiving waivers — or accommodating the rights — of the other Alliance and Aux Sable owners to acquire their pro rata share of El Paso’s interests. The majority of the sale is expected to close by the end of the year, and the remainder of the transaction is expected to close in early 2003.
Proceeds will be used to repay outstanding debt at El Paso and is a continuation of the company’s previously announced balance sheet enhancement program. “This transaction represents another important step in El Paso’s plan to reduce debt and strengthen our balance sheet,” said William A. Wise, chairman and chief executive officer for El Paso Corporation.
“As of today, we have announced asset sales of approximately $2.7 billion, including this transaction, and we are on track for the year-end target of $4 billion.”
El Paso Corporation is a provider of natural gas services and the largest pipeline company in North America. The company has leading positions in natural gas production, gathering and processing, and transmission, as well as liquefied natural gas transport and receiving, petroleum logistics, power generation, and merchant energy services.
For more information, visit www.elpaso.com .
Source: El Paso Corporation