TransCanada To Sell Interests in Iroquois and PNGTS to TC PipeLines, LP
TransCanada Corporation today announced it has entered into agreements to sell a 49.3 per cent interest in Iroquois Gas Transmission System, LP (Iroquois), together with its remaining 11.8 per cent 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.
The Iroquois pipeline transports natural gas under long-term contracts and extends from the TransCanada Mainline system at the U.S. border near Waddington, New York to markets in the U.S. 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 an interstate natural gas pipeline which began serving New England's energy needs in March 1999. The pipeline connects with the Trans Quebec & 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 per cent interest in PNGTS to the Partnership.
TransCanada, through its subsidiaries, currently holds an approximate 26 per cent interest in TC PipeLines, LP, a United States master limited partnership, which was formed to acquire, own and actively participate in the management of U.S. natural gas pipelines and related assets.