TransCanada Corp has exercised a right to increase by more than 10% its ownership interest in New England’s Portland Natural Gas Transmission System to 43.42%, purchasing a portion of DTE East Coast Pipeline Co.’s interest in PNGTS for US$47.1 million. The price includes assumption of US$27.8 million in debt.

“It fits well in our strategy to sustain and grow and optimize our natural gas transmission system in North America,” said TransCanada spokesman Glenn Herchak. “We’re always looking at ways to optimize the system and depending on what the market requirements are we would certainly look at opportunities to expand capacity.”

The transaction is expected to close within the next month, leaving El Paso Corp. with a 29.64% stake in PNGTS and Gaz Metropolitain with 26.94%.

PNGTS operates a 293-mile pipeline that brings about 220 MMcf/d of Canadian gas to markets in Maine, New Hampshire and Massachusetts from a connection with the Trans Quebec & Maritimes Pipeline (TQM) near Pittsburg, NH.

TransCanada owns all or part of 10 major gas pipeline systems, including its Canadian Mainline, its Alberta system, its British Columbia pipeline and Foothills Pipe Lines ( all 100%); Great Lakes Gas Transmission (50%), Iroquois Gas Transmission (40.96%), Northern Border Pipeline (10% indirect interest), PNGTS, TQM (50% each) and Tuscarora Gas Transmission (16.4% indirect interest and 1% direct interest).

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