Feb 27 TransCanada Corp said it
has offered to sell stakes in two natural gas pipelines that
serve the U.S. Northeast to TC PipeLines LP, U.S.-based
master limited partnership in which it holds a 27 percent stake.
TransCanada said it would sell its 49.3 percent stake in the
Iroquois gas transmission system and the remaining 11.8 percent
stake it holds in the Portland natural gas transmission system.
Financial terms of the deal were not disclosed.
"This offer demonstrates the meaningful role that TC
PipeLines, LP can fulfill in funding a portion of our C$23
billion near-term capital program," said TransCanada Chief
Executive Russ Girling said in a statement.
TransCanada had sold a 49.9 percent stake in the Portland
pipeline to TC PipeLines in January 2016.
"... We believe this investment will further strengthen our
cash flows and our ability to increase our quarterly
distributions this year in line with recent increases," Brandon
Anderson, president of TC PipeLines GP Inc, said in a statement.
TC PipeLines said the offer was subject to approval by its
board of directors.
The Iroquois pipeline is jointly operated by TransCanada and
Dominion Resources Inc and extends from the TransCanada
Mainline system at the U.S. border near New York to markets in
the U.S. Northeast.
The Portland pipeline connects with the TransQuebec and
Maritimes pipelines at the Canadian border and shares facilities
with the Maritimes and Northeast Pipeline from Westbrook, Maine
to a connection with the Tennessee gas system near Boston.
(Reporting by John Benny in Bengaluru; Editing by Savio