TransCanada sells gas pipeline stakes

May 16, 2013 at 7:34 AM   |   Comments

HOUSTON, May 16 (UPI) -- Taking on major stakes in pipeline systems from TransCanada represents the largest acquisition to date for U.S. company TC PipeLines, an executive said.

TC PipeLines, a TransCanada-affiliated partnership, agreed to acquire stakes in TransCanada's 1,353-mile Gas Transmission Northwest pipeline network and the 303-mile Bison natural gas pipeline system for around $1 billion.

The company said the acquisition increases its interest in the pipeline systems from 25 percent to 70 percent. TransCanada retains the rest.

"This acquisition is the largest transaction in the partnership's history and significantly increases the partnership's future cash flows and earnings," TC PipeLines President Steve Becker said in a statement.

TransCanada owns 33 percent of TC Pipelines, formed to take on interests in U.S. natural gas pipeline systems.

The Gas Transmission Northwest runs from Western Canada to markets on the western U.S. coast. Bison services the Rocky Mountain region.

TransCanada is waiting for U.S. government's approval of the $7 billion Keystone XL pipeline, a controversial project designed to carry so-called oil sands to southern U.S. refineries.

"The transaction demonstrates one of the many funding options available to TransCanada to finance our current capital commitments," TransCanada President Russ Girling said in a statement.

© 2013 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Recommended UPI Stories
Featured UPI Collection
Notable deaths of 2014 [PHOTOS]

Notable deaths of 2014 [PHOTOS]

Most Popular
Zephyr 7 UAS chalks up new achievement
City of London Police get Kaspersky Lab training
U.S. oil pipeline output increasing
Brazil assessing capabilities of Russian air defense system
U.S. Navy receives first low-rate production RAM Bock 2 missile
Trending News