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Enron Mail |
Note: The buyer of the El Paso interest in Oasis has not been announced. A
consent agreement has been filed with the FTC and State of Texas Tennesse Pipeline as part of the normal review process prior to final approval for the PG&E Texas assets formally owned by Valero and TECO. Tennessee had a note in their 3rd quarter 10-Q on El Paso possibly putting some of the PG&E Texas acquired properties in their MLP. They also indicated they had put their Crystal Storage in the MLP. El Paso to Sell Oasis Pipe Stake El Paso Energy Corp. will sell its 35% stake in Oasis Pipe Line, a 1 Bcf/d line in Texas, according to a disclosure in a securities filing made last week. El Paso said that the sale, which was negotiated in October, would result in a $20 million loss. The 36-inch intrastate gas line runs 608 miles from the West Texas Waha market to the Katy hub outside of Houston. The pipeline provides a link between El Paso Natural Gas and Tennessee Gas Pipeline, and is the principal route for Permian Basin supplies to access the Houston Ship Channel. Oasis completed a substantial upgrade in 1998, installing 9,400 horsepower of compression, and new interconnects to increase deliveries to eastern markets. Dow Hydrocarbons and Aquila Energy, a unit of Utilicorp United, also own stakes in the line. Along with its 35% ownership, Aquila also has firm transport rights on 280,000 Mcf/d. Before El Paso's sale is complete, it still needs approvals from the Federal Trade Commission and the Texas Attorney General.
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