On March 23, 2005, Petro-Canada acquired from El Paso Corporation a 51% indirect interest in Coastal Petrochemical, L.P., a limited partnership between a subsidiary of Société générale de financement du Québec (SGF) and an indirect subsidiary of El Paso Corporation, for approximately CDN$90 million (which includes working capital), subject to post closing adjustments. Petro-Canada will hold 51% of the limited partnership. SGF will continue to own the remaining 49% interest. The Coastal Petrochemical facility, located in Montréal, Québec, primarily produces paraxylene, which is used to manufacture polyester and plastic bottles.

Petro-Canada is one of Canada’s largest oil and gas companies, operating in both the upstream and downstream sectors of the industry in Canada and internationally. El Paso Corporation owns North America’s largest natural gas pipeline system and one of North America’s largest independent natural gas producers. The mission of SGF, as an industrial and financial holding company, is to carry out, in cooperation with partners and in accordance with accepted requirements for profitability, economic development projects, especially in the industrial sector, that comply with the economic development policy of the Government of Québec.

El Paso Corporation was represented in-house by Kyle Stallones and Fiona Shakoor and by Brian Salpeter, Marc-Alexandre Poirier (corporate), Michel Pelletier (environmental) and Richard Elliott (competition) of Davies Ward Phillips & Vineberg LLP.