Petro-Canada acquires interest in Paraxylene plant for US$74Mn

25-Mar-05

Petro-Canada, one of Canada's largest oil and gas companies, operating in both the upstream and downstream sectors of the industry globally, plans to make an entry into a market segment to deliver growth and profitability. Petro-Canada has acquired an interest in Coastal Petrochemical, a limited partnership between La Société générale de financement du Quebec and an indirect subsidiary of El Paso Corporation. The deal is subject to post closing adjustments. Petro-Canada will hold 51% of the limited partnership and La Société générale de financement du Quebec holds the balance. The Coastal Petrochemical facility, located in Montreal, produces paraxylene, Petro-Canada currently supplies mixed xylenes to the Coastal Petrochemical plant from its nearby Montreal refinery and will derive economic benefit from this acquisition. This acquisition follows a series of recent investments by Petro-Canada in the province of Québec, including a US$380 million investment to enhance the Montreal refinery, and plans to develop a liquefied natural gas (LNG) facility in Gros Cacouna, in partnership with TransCanada Corp.