| Cargill Completes
Acquisition of Mirant’s Canadian Natural Gas Transportation,
Storage and Aggregator Contracts
July 2, 2003
WINNIPEG – Cargill Limited announced today that it
has completed the acquisition of Mirant’s (NYSE: MIR)
Canadian natural gas aggregator services contracts, a significant
portion of its natural gas transportation contracts and a
portion of its storage contracts. The sale was originally
announced on May 1, 2003.
“We are very excited about the opportunities we now
have to strengthen relationships with Canadian natural gas
producers and to provide a broader range of risk management
solutions to producers and consumers in the North American
natural gas market,” said David Gabriel, president,
Cargill Power & Gas Markets.
“This transaction is the latest of several that are
expected to allow Mirant to reduce its collateral obligations
by more than $200 million over time,” said Rick Pershing,
executive vice president, Mirant. “With this transaction,
we move closer to achieving our goal of reducing collateral
obligations to $500 million by the end of the year.”
The acquired contracts represent 380 million cubic feet per
day of natural gas transportation assets and approximately
1.3 billion cubic feet of natural gas storage, as well as
Mirant’s “netback pool.” The netback pool
is the portion of the natural gas marketing contracts that
market the aggregate supply of natural gas from over 500 Canadian
natural gas producers associated with the former TransCanada
pool business.
Cargill has also assumed the management services agreements
to operate the aggregator businesses of Pan-Alberta Gas Ltd.,
Northwest Pacific Energy Marketing Inc. and CanWest Gas Supply,
Inc.
Cargill Limited is one of Canada’s largest agricultural
merchandisers and processors with interests in meat, egg,
malt and oilseed processing, livestock feed, salt and fertilizer
manufacturing, as well as crop input products, grain handling
and merchandizing. The company employs approximately 5,000
across Canada. Cargill Limited is a subsidiary of Cargill,
Incorporated (www.cargill.com), headquartered in Minneapolis.
Cargill provides distinctive customer solutions in supply
chain management, food applications, and health and nutrition.
Visit Cargill Limited at www.cargill.ca.
Mirant is a competitive energy company that produces
and sells electricity in North America, the Caribbean, and
the Philippines. Mirant owns or controls more than 21,000
megawatts of electric generating capacity globally. Mirant
operates an integrated asset management and energy marketing
organization from our headquarters in Atlanta. A complete
list of our assets is available at www.mirant.com.
Mirant media contact:
David Payne, 678 579 6065
James Peters, 678 579 5266
Cargill media contact:
Lori Johnson, 952-742-6194
Mirant investor contact:
John Robinson, 678 579 7782
Carey Skinner, 678 579 3602
Mirant stockholder inquiries:
678 579 7777
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