TransCanada Corporation (TransCanada) has announced it has entered into agreements to sell a 49.3% interest in Iroquois Gas Transmission System, LP (Iroquois), together with its remaining 11.8% interest in Portland natural gas transmission system (PNGTS), to its master limited partnership, TC PipeLines, LP (the partnership).
The US$765 million transaction, comprised of US$597 million in cash and the assumption of US$168 million in proportionate debt at Iroquois and PNGTS, is expected to close mid 2017, subject to customary conditions precedent.
"This agreement demonstrates the meaningful role that our MLP can play in funding a portion of our US$23 billion near term growth portfolio," said Russ Girling, TransCanada's President and CEO. "Successfully executing our capital program through the end of the decade positions TransCanada to deliver significant sustainable growth in earnings, cash flow and dividends."
The Iroquois pipeline transports natural gas under long term contracts and extends from the TransCanada Mainline system at the US border near Waddington (New York) to markets in the US northeast, including New York City, Long Island and Connecticut. Iroquois is currently jointly owned by affiliates of TransCanada and Dominion Resources, Inc. through a joint venture. The pipeline is operated by a stand-alone company that is also jointly owned and based in Connecticut.
Read the article online at: https://www.worldpipelines.com/business-news/04052017/transcanada-to-sell-iroquois-and-pngts-interests/