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Financial News

Jan 2012 Financial News

Guardian and partners sell gas pipeline business

Jan 13, 2012

Two United States companies have acquired majority ownership of Eastern Caribbean Gas Pipeline Company Limited (ECGPC), which is developing a natural-gas export pipeline from Trinidad and Tobago to the Eastern Caribbean.

The buyers, Beowulf Energy LLC and First Reserve Energy Infrastructure Fund (FREIF) reportedly paid cash for the business.

Prior to the transaction, the main shareholders in ECGPC, incorporated in 1995, were Guardian Holdings Limited, Trinidad and Tobago Unit Trust Corporation, National Gas Company of Trinidad and Tobago Limited and Intra-Caribbean Gas Pipeline Company Limited.

ECGPC disclosed the deal Wednesday but gave no details of the cash transaction.

ECGPC will construct and operate a 300-kilometre natural-gas pipeline from Tobago to Barbados, and thereafter extend the pipeline from Barbados to other Eastern Caribbean islands.

"The pipeline is expected to significantly lower the cost of producing electricity in countries such as Barbados which rely primarily on fuel oil to produce electricity. The pioneering project will help reshape the regional energy market and reduce dependence on oil-based products," ECGPC said in a statement.

ECGPC spokesman R. Gregory Rich said the "extensive energy infrastructure experience and substantial financial resources of Beowulf and FREIF will accelerate the implementation of this regionally important project, thereby creating long-term value for the company's investors while delivering tangible financial and environmental benefits to the islands served by the pipeline".

Chief executive officer of Beowulf Energy, Paul Prager, said he was looking forward to completing the construction of the project.

"We are grateful to our new fellow partners for the vision and foresight in identifying and developing a long-term solution for lower-priced energy in the Eastern Caribbean region," he said.


Source:
Jamaica Gleaner
Friday January 13, 2012

http://jamaica-gleaner.com/gleaner/20120113/business/business8.html