Another Natural Gas Pipeline Off the Auction Block

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Researched by industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). National Energy & Gas Transmission, Incorporated. (NYSE:NEGT)(Portland, Oregon) and TransCanada Corporation (NYSE:TRP)(Calgary, Alberta, Canada) announced an agreement to acquire Gas Transmission Northwest Corporation (GTN) for $1.703 billion, including its assumed debt and closing adjustments costs of $500 million. This agreement, which should close in October of 2004, will be composed of a strong internally generated cash flow from TransCanada, who will finance the acquisition for $1.5 billion on committed credit lines. The sale will also include a court-sanctioned auction process with customary bidding procedures approved by the U. S. Bankruptcy Court.

Gas Transmission Northwest Pipeline, a subsidiary of National Energy & Gas Transmission Incorporated, owns and operates two pipeline systems. They are the Pacific Gas Transmission and the North Baja pipeline system which operates an 80 mile pipeline extending from Ehrenberg, Arizona on to the California-Baja Mexican border. Both systems consist of more than 1,350 miles of natural gas pipeline, extending from the British Columbia-Idaho border on to the Oregon-California border. Natural gas is then primarily transported from supplies to the southwestern United States for markets in North California and Mexico. GTN transports more than 2.9 billion cubic feet of gas per day (Bcf/d) utilizing approximately 513,400 horsepower to supply compression.

TransCanada Corporation, a leading North American Energy Company operates one of the largest remote-controlled natural gas pipeline networks in the world, focusing on natural gas transmission and power services of approximately 24,200 miles long. This system interconnects natural gas resources to markets in the western Canada region and the United States, in addition to generating 7,300 megawatts of Coal/Oil, hydroelectric, and wind power at numerous facilities across the country.

With $650 million of debt and equity remaining under its Canadian and U.S. shelf respectively, TransCanada may also consider the sale of certain assets within its existing portfolio.