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BP Amoco Gas & Power purchases ProGas Limited Company will now market 3 billion cubic feet a day of Canadian natural gas, increase total North American sales to 7 billion cubic feet a day Petroleum News Alaska
BP Amoco’s recently established Gas & Power division and ProGas Ltd., Canada’s second largest natural gas supply-aggregator, said Oct. 25 that BP Amoco’s Gas & Power division has made a successful bid to purchase all of the shares of ProGas not currently owned by BP Amoco.
The acquisition of ProGas will bring the volume of Canadian natural gas marketed by BP Amoco Gas & Power to 3 billion cubic feet per day, and increase its total North American sales to 7 billion cubic feet per day.
ProGas is a natural gas aggregator located in Calgary, Alberta, which purchases gas from approximately 170 producers in the Western Canadian Sedimentary Basin and markets gas across North America. In its most recent fiscal year, ProGas sold in excess of 500 billion cubic feet, or about 1.45 billion cubic feet per day.
Gas and power business launched in September Richard Flury, BP Amoco’s Chief Executive, Gas & Power said: “This is an excellent first step for our Gas & Power business, which we launched in September this year. The new division aims to materially grow the BP Amoco Group’s gas and power interests in downstream markets around the world. The ProGas acquisition moves us into a position as one of North America’s leading gas marketing businesses. We will build on this, strengthen and expand our relationships with customers and ensure a continued prudent governance framework for ProGas,”
Ken MacDonald, President and Chief Executive Officer of ProGas said: “BP Amoco recognizes the importance of continuity in the relationships ProGas has achieved over the last 22 years with its pool producers and sales customers. This is reflected in BP Amoco’s pool governance plan and commitment with respect to existing ProGas employees.”
BP Amoco is North America’s largest producer and private reserves holder of natural gas, producing 3.5 billion cubic feet of natural gas per day.
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