TransCanada to sell stakes in two natural gas transmission systems for $765 mn

North American energy company TransCanada Corp, yesterday struck a deal to sell its remaining 49.3-per cent stake in Iroquois Gas Transmission System and an 11.8-per cent stake in Portland Natural Gas Transmission System (PNGTS) for $765 million.

TransCanada did not name the buyer, but said that the deal comprises $597 million in cash and the assumption of $168 million combined debt of Iroquois and PNGTS.

"This agreement demonstrates the meaningful role that our MLP can play in funding a portion of our $23 billion near-term growth portfolio," said Russ Girling, TransCanada's president and CEO.

The Iroquois pipeline transports natural gas under long-term contracts and extends from the TransCanada Mainline system at the US border near New York to markets in the US 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 serves New England's energy needs. 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 stake in PNGTS to TC PipeLines.

TransCanada is North America's leading provider of gas storage and related services with 653 billion cubic feet of storage capacity.

The Calgary-based company operates a network of natural gas pipelines that extend more than 91,500 kms, tapping into virtually all major gas supply basins in North America.

It currently owns or holds stakes in over 10,100 megawatts of power generation in Canada and the US.

The Toronto and New York stock exchanges-listed company also develops and operates one of North America's leading liquids pipeline systems that extend over 4,300 kms connecting growing continental oil supplies to key markets and refineries.