TC PipeLines LP (NYSE: TCP) said Jan. 4 it closed the acquisition of a 49.9% stake in a U.S. natural gas pipeline from TransCanada Corp. (NYSE: TRP) for $223 million.
The stake sale in Portland Natural Gas LP (PNGTS) would include $188 million in cash and debt of $35 million. TransCanada owns a 61.7% stake in PNGTS, which delivers natural gas to the U.S. northeast.
Proceeds will be used to fund TransCanada's capital program and further diversify the partnership's asset base, "positioning it for continued growth," said Russ Girling, TransCanada's president and CEO, in a statement on Nov. 6.
Houston-based TC PipeLines is the MLP of TransCanada, which is headquartered in Calgary, Alberta.
The acquisition, effective Jan. 1, is expected to be immediately accretive to distributable cash flow and earnings, the release said.
Recommended Reading
Cracking the Fracking Code: Efficient Approaches to Optimize Wellbores
2024-06-30 - Technology and process innovations improve operational efficiencies even as companies scramble for greener fracking solutions.
Honeywell Bags Air Products’ LNG Process, Equipment Business for $1.8B
2024-07-10 - Honeywell is growing its energy transition services offerings with the acquisition of Air Products’ LNG process technology and equipment business for $1.81 billion.
TGS Awarded Ocean Bottom Node Data Acquisition Contract in North America
2024-07-17 - The six-month contract was granted by a returning client for TGS to back up the client’s seismic data capabilities for informed decision making.
Chemex Agrees to FEED Contract for Verde’s NatGas-to-gasoline Plant
2024-06-05 - Verde said the project will be located in Martin County, Texas. Completion of Chemex’s FEED work is anticipated in early 2025.
Exclusive: Blue Latitudes’ Ever-evolving Process to Decommission Offshore Rigs to Reefs
2024-06-05 - Environmental consulting firm Blue Latitudes looks at decommissioned offshore rigs as potential fisheries habitats, and the process is always evolving as the energy industry evolves, Amber Sparks, co-founder of Blue Latitudes, told Hart Energy's Jordan Blum at the Offshore Technology Conference.