(Recasts, adds price at which pipeline stakes previously
CALGARY, Alberta Feb 27 TransCanada Corp
has offered to sell stakes in two U.S. natural
gas pipelines to fund other projects including its recently
purchased Columbia natural gas network, the Calgary-based
company said on Monday.
The move comes after TransCanada, Canada's No. 2 pipeline
operator, sold other assets and offered new shares late last
year to help fund its $10.3-billion acquisition of the Columbia
Pipeline Group, a deal that eased concerns over its outlook,
which had been hindered by challenges on crude pipelines.
TransCanada said it would sell its 49.3 percent stake in the
Iroquois system and its remaining 11.8 percent stake in the
Portland system, both serving the U.S. Northeast, to TC
PipeLines LP, a partnership in which it holds a
Financial terms were not disclosed, but a 25.9 percent stake
in Iroquois system sold for $286.5 million in 2015, and
TransCanada last year sold a 49.9 percent stake in the Portland
pipeline to TC PipeLines for $223 million.
"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," TransCanada Chief Executive
Russ Girling said in a statement.
According to TransCanada, its near-term projects also
include the Nova Gas Transmission Ltd and Canadian Mainline
natural gas systems, minor crude pipelines and power generation
projects in Canada and gas pipelines in Mexico.
TransCanada's outlook has been clouded by regulatory
challenges to two proposed pipelines projects from Canada's oil
heartland of Alberta, Energy East to the East Coast and Keystone
XL to the Gulf.
While the United States under President Donald Trump has
been favorable toward Keystone XL, analysts have said it was
unclear how quickly the pipeline could go ahead if approved.
TC PipeLines said the offer was subject to approval by its
board of directors.
The Iroquois pipeline 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 the Tennessee
gas system near Boston.
(Reporting by Ethan Lou in Calgary, Alberta, and John Benny in
Bengaluru; Editing by Savio D'Souza and Cynthia Osterman)