TransCanada Pipelines Ltd. announced late Friday it completed a deal to buy Williams Cos. Inc’s interest. in Northern Border Partners LP for $12 million (US). The transaction provides TransCanada with a general partnership stake in Northern Border Partners, which owns 70% of the Canada-to-Midwest Northern Border Pipeline, and increases TransCanada’s indirect ownership interest in the pipeline.

“TransCanada considers Northern Border Pipeline to be one of the preferred routes to move gas from the North to market in the future,” said company CEO Hal Kvisle. “While the acquisition is not of a large scale, it provides TransCanada with a strategic opportunity to participate in the management of Northern Border Partners.”

As a result of the deal, TransCanada said it effectively owns 0.35% of the aggregate 2% general partnership interest in Northern Border Partners. The Calgary-based energy company will be entitled to a 17.5% vote on the partnership policy committee of Northern Border Partners. Two Enron Corp. affiliates own the remaining general partnership interest.

While Northern Border Partners owns 70% of Northern Border Pipeline, the remaining 30% is held by TC Pipelines LP, whose general partner is a wholly owned subsidiary of TransCanada. The acquisition does not affect TransCanada’s 33.41% ownership interest in TC Pipelines, or TC Pipelines’ ownership interest in the Northern Border Pipeline.

TransCanada indirectly owns approximately 10% of Northern Border Pipeline through its interest in TC Pipelines.

In addition to its interest in Northern Border Pipeline, Northern Border Partners owns the Midwestern Gas Transmission system, which stretches from Portland, TN, to Joliet, IL; gas gathering systems and processing plants in the Powder River, Wind River and Williston basins in the United States; and gathering and processing facilities in Alberta, Canada.

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