TransCanada has entered into agreements to sell a 45% interest in each of Gas Transmission Northwest (GTN) and Bison Pipeline (Bison) to TC PipeLines for an aggregate purchase price of US$1.05bn, which includes US$146m for 45% of GTN’s debt. The sale is expected to close in July 2013 and is subject to regulatory approvals and certain closing conditions.
The GTN pipeline system is a 2,178 km gas transmission system that transports Western Canada Sedimentary Basin and Rocky Mountain-sourced natural gas to third-party natural gas pipelines and markets in California, Nevada and the Pacific Northwest. GTN connects with TC PipeLines’s Tuscarora pipeline system and with Pacific Gas & Electric at the Oregon-California border. Bison is a 487 km gas pipeline connecting Rocky Mountain gas supply to downstream markets through the Northern Border pipeline system. The pipeline was constructed in 2010 and placed into service in January 2011.
Once the transaction is complete, TransCanada, through its subsidiaries, will continue to hold an approximately 30% direct ownership interest in both pipelines.
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