TC Energy Corp. is seeking to streamline the business with an agreement to acquire its pipeline partnership in an all-stock deal valued at $1.68 billion.

The Calgary-based midstream company said Tuesday it has a definitive merger agreement to exchange common shares of all of the outstanding common units of TC PipeLines LP (TCP), its publicly held master limited partnership (MLP).

The acquisition of the pipelines business would provide TC with the opportunity to consolidate the ownership interest in eight natural gas pipelines regulated by FERC. 

The gas systems are “an integral part” of the overall North American network, according to TC CEO Russ Girling. “In addition, completion of the transaction will serve to further simplify our corporate structure.”

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