TransCanada offers Iroquois, PNGTS shares to its MLP

TransCanada Corp. has offered to sell a 49.3% interest in Iroquois Gas Transmission System LP, together with its remaining 11.8% interest in Portland Natural Gas Transmission System (PNGTS), to its master limited partnership, TC PipeLines LP (TCP).

TransCanada Corp. has offered to sell a 49.3% interest in Iroquois Gas Transmission System LP, together with its remaining 11.8% interest in Portland Natural Gas Transmission System (PNGTS), to its master limited partnership, TC PipeLines LP (TCP).

The 416-mile Iroquois pipeline transports natural gas under long-term contracts from the TransCanada Mainline system at the US border near Waddington, NY, to the US Northeast, including New York City, Long Island, and Connecticut. Iroquois is 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’s 295 miles connect with the TransQuebec and Maritimes Pipeline at the Canadian border and share equipment with the Maritimes and Northeast Pipeline from Westbrook, Me., to a connection with the Tennessee Gas Pipeline System near Boston. PNGTS has a design capacity of 168 MMcfd at the Canadian border, increasing to 210 MMcfd from Westbrook to Dracut, Mass.

In January 2016, TransCanada sold a 49.9% interest in PNGTS to TCP.

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