Semco selling Alaska Pipeline Co.

Semco Energy said May 1 that it is discussing the sale of Alaska Pipeline Co. with potential buyers and has retained McDonald Investments to assist in the sale.

Marcus Jackson, Semco chairman, president and CEO, said in a statement on the company's first quarter results and potential sales that a sale is expected to close in the latter half of 2003 subject to approvals, including that of the Regulatory Commission of Alaska. Proceeds of the sale would be used to reduce Semco's outstanding debt.

Alaska Pipeline delivers natural gas from several producing fields in Southcentral Alaska to the Enstar Natural Gas distribution system. Semco said that Alaska Pipeline is the only natural gas transmission line in Anchorage. It has no employees and Enstar is its only customer.

The company said that under the proposed terms of a sale Enstar would continue to operate and manage Alaska Pipeline's transmission pipelines and customers and gas suppliers would not see any changes.