TransCanada readies for northern gas
In a series of transactions, TransCanada has become operator of the Northern Border Pipeline, the largest carrier of natural gas from Alberta to the U.S. Midwest, as it prepares for the arrival of northern frontier gas.
It sold its 17.5 percent general partner interest in Northern Border Partners for US$30 million.
In a related move, TC PipeLines, 13.4 percent owned by TransCanada, will pay $300 million and assume $120 million in debt for an additional 20 percent stake in Northern Border Pipeline.
That raises TC PipeLines interest to 50 percent in a 1,200-mile system capable of carrying 2.4 billion cubic feet per day from the Montana-Saskatchewan border to the Midwest.
The sale of TransCanada’s 17.5 percent general partner interest in Oneok, of Tulsa, Okla., along with other transactions valued at $3 billion, raises Oneok’s holding to 45.7 percent of Northern Border Partners and 100 percent of general partner interest.
TransCanada is scheduled to become operator of the pipeline in April 2007.
Once the transactions are concluded, Northern Border Partners and TC PipeLines will each own half of the pipeline.
TransCanada Chief Executive Officer Hal Kvisle said the pipeline is expected to play a significant role in moving northern gas from the Alberta hub to U.S. markets.
—Gary Park
|