TransCanada Corp. is looking to sell interest in two northeast pipelines to TC PipeLines LP, its affiliated master limited partnership (MLP), the company announced Monday.
The Calgary-based TransCanada said it’s offering up a 49.3% interest in Iroquois Gas Transmission System LP, along with its remaining 11.8% interest in the Portland Natural Gas Transmission System (PNGTS).
The terms of the deal are subject to negotiation and will require approval from the MLP’s board, TransCanada said. TransCanada’s board has already approved the sales, the company said.
TransCanada owns a 27% interest in TC PipeLines through its subsidiaries.
“This offer demonstrates the meaningful role that TC PipeLines can fulfill in funding a portion of our $23 billion near-term capital program,” TransCanada CEO Russ Girling said. “Delivering on our industry-leading growth portfolio positions us to deliver significant sustainable growth in earnings, cash flow and dividends.”
Iroquois runs from the TransCanada Mainline System at the U.S. border in Waddington, NY, to supply Northeast markets, including New York and Connecticut. Affiliates of TransCanada and Dominion Resources Inc. own the pipeline as part of a joint venture.
PNGTS extends from the Trans Quebec and Maritimes Pipeline to a connection with the Tennessee Gas Pipeline System near Boston. TransCanada sold a 49.9% stake in PNGTS to TC PipeLines in January 2016.
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