TC PipeLines LP (TCPL) has entered into agreements to acquire an additional 45% interest in each of Gas Transmission Northwest LLC (GTN) and Bison Pipeline LLC from TransCanada Corp. for an aggregate purchase price of $1.05 billion.
TCPL will increase its interest in GTN and Bison pipelines to 70% from 25%. The aggregate purchase price includes the assumption of $146 million of GTN’s debt, leaving cash to close, subject to certain closing adjustments.
The GTN pipeline system transports Western Canadian and Rocky Mountain natural gas to Washington, Oregon, Nevada, and California. The Bison pipeline transports Rocky Mountain natural gas to the US Midwest through a connection with TC PipeLines’ Northern Border pipeline system.
Both the GTN and Bison pipelines are supported by long-term ship-or-pay contracts that extend through the end of the decade.
The transaction is expected to close in July, subject to regulatory approvals and customary closing conditions.