TransCanada Corporation (TransCanada) has announced it has offered 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), subject to satisfactory negotiation of terms, compliance with any applicable regulatory requirements, and Partnership Board approval, to its master limited partnership, TC PipeLines, LP (the Partnership). TransCanada's Board of Directors has approved the sales of Iroquois and PNGTS.
"This offer demonstrates the meaningful role that TC PipeLines, LP can fulfill in funding a portion of our US$23 billion near term capital programme," said Russ Girling, TransCanada's President and Chief Executive Officer. "Delivering on our industry-leading growth portfolio positions us 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.
PNGTS is a high-capacity interstate natural gas pipeline which began serving New England's energy needs in March 1999. The pipeline connects with the TransQuebec and Maritimes Pipeline at the Canadian border and shares facilities with the Maritimes and Northeast Pipeline from Westbrook, Maine to a connection with the Tennessee Gas Pipeline System near Boston, Massachusetts. In January 2016, TransCanada sold a 49.9% interest in PNGTS to the Partnership.
TransCanada, through its subsidiaries, currently holds an approximate 27% interest in TC PipeLines, LP, a United States master limited partnership, which was formed to acquire, own and actively participate in the management of US natural gas pipelines and related assets.
Read the article online at: https://www.worldpipelines.com/business-news/28022017/transcanada-to-sell-interest-in-iroquois-pipeline-and-gas-transmission-system/