TransCanada locks up more U.S. Northeast capacity

Gary Park

Petroleum News Calgary correspondent

TransCanada is on its way to owning close to three-quarters of the Portland Natural Gas Transmission System in the New England area.

It will buy El Paso’s 29.64 percent stake for about $137.2 million, including assumed debt of $80.7 million, and if other partners in Portland Natural exercise their rights, TransCanada will see its stake expand to 73.06 percent.

“Increasing our interest in PNGTS bolsters TransCanada’s role as an energy supplier in the U.S. Northeast,” said Chief Executive Officer Hal Kvisle. “PNGTS is a strategic link in the Northeast, providing market access to current and future supplies of natural gas.”

The 285-mile interstate line carries 220 million cubic feet per day of gas, connecting the Trans Quebec & Maritimes Pipeline near Pittsburg, N.H., and serves delivery points in New Hampshire and Massachusetts.