TC PipeLines LP logo

TCP - TC PipeLines LP News Story

$26.03 -0.3  -1.3%

Last Trade - 25/09/20

Market Cap £1.50bn
Enterprise Value £3.08bn
Revenue £308.4m
Position in Universe 1808th / 6417

UPDATE 1-TransCanada to sell two U.S. pipeline stakes to raise funds

Mon 27th February, 2017 7:13pm
(Recasts, adds price at which pipeline stakes previously 
traded) 
    CALGARY, Alberta, Feb 27 (Reuters) - TransCanada Corp 
 TRP.TO   TRP.N  has offered to sell stakes in two U.S. natural 
gas pipelines to fund other projects including its recently 
purchased Columbia natural gas network, the Calgary-based 
company said on Monday.  
    The move comes after TransCanada, Canada's No. 2 pipeline 
operator, sold other assets and offered new shares late last 
year to help fund its $10.3-billion acquisition of the Columbia 
Pipeline Group, a deal that eased concerns over its outlook, 
which had been hindered by challenges on crude pipelines. 
    TransCanada said it would sell its 49.3 percent stake in the 
Iroquois system and its remaining 11.8 percent stake in the 
Portland system, both serving the U.S. Northeast, to TC 
PipeLines LP  TCP.N , a partnership in which it holds a 
27-percent stake. 
    Financial terms were not disclosed, but a 25.9 percent stake 
in Iroquois system sold for $286.5 million in 2015, and 
TransCanada last year sold a 49.9 percent stake in the Portland 
pipeline to TC PipeLines for $223 million.  urn:newsml:reuters.com:*:nMKW9BlS3a 
    "This offer demonstrates the meaningful role that TC 
PipeLines, LP can fulfill in funding a portion of our C$23 
billion near-term capital program," TransCanada Chief Executive 
Russ Girling said in a statement.  urn:newsml:reuters.com:*:nCCN2z8wQK 
    According to TransCanada, its near-term projects also 
include the Nova Gas Transmission Ltd and Canadian Mainline 
natural gas systems, minor crude pipelines and power generation 
projects in Canada and gas pipelines in Mexico. 
    TransCanada's outlook has been clouded by regulatory 
challenges to two proposed pipelines projects from Canada's oil 
heartland of Alberta, Energy East to the East Coast and Keystone 
XL to the Gulf.  
    While the United States under President Donald Trump has 
been favorable toward Keystone XL, analysts have said it was 
unclear how quickly the pipeline could go ahead if approved. 
    TC PipeLines said the offer was subject to approval by its 
board of directors.  
    The Iroquois pipeline extends from the TransCanada Mainline 
system at the U.S. border near New York to markets in the U.S. 
Northeast. The Portland pipeline connects with the TransQuebec 
and Maritimes pipelines at the Canadian border and the Tennessee 
gas system near Boston. 
 
 (Reporting by Ethan Lou in Calgary, Alberta, and John Benny in 
Bengaluru; Editing by Savio D'Souza and Cynthia Osterman) 
 ((Ethan.Lou@thomsonreuters.com; +1-403-531-1634; Reuters 
Messaging: ethan.lou.thomsonreuters.com@reuters.net)) 
 
Keywords: TRANSCANADA ASSETS/
© Stockopedia 2020, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.