TransCanada sheds Two Gasline Stakes
TransCanada Corp said on Thursday it would sell its remaining 49.3 percent interest in Iroquois Gas Transmission System LP and an 11.8 percent stake in Portland Natural Gas Transmission System (PNGTS) for $765 million.
The Canadian pipeline operator said it would sell the stakes in the two gas pipelines to TC PipeLines LP, its master limited partnership that has investments in seven pipelines capable of moving 9.1 billion cubic feet per day of natural gas.
The deal value comprises $597 million in cash and the assumption of $168 million in proportionate debt at Iroquois and PNGTS, Transcanada said.
The Iroquois pipeline transports natural gas under long-term contracts and extends from the TransCanada Mainline system near Waddington, New York to markets in the U.S. northeast.
PNGTS, an interstate natural gas pipeline, starts near Pittsburg, New Hampshire and ends near Dracut, Massachusetts.
TransCanada sold a 49.9 percent stake in PNGTS to TC PipeLines in January last year.
The deal is expected to close mid-year.
Reporting by Arathy S Nair
