TransCanada paves way to Mackenzie pipeline

Gary Park, PNA Canadian correspondent

TransCanada PipeLines Ltd. is taking steps to position itself for a key stake in any gas pipeline from the Mackenzie Delta.

Canada’s dominant energy pipeline company will seek approval from shareholders, courts and regulators next month for a restructuring that would smooth the way for it to invest in a northern pipeline and other new ventures.

TransCanada’s board voted unanimously Feb. 25 to create a holding company, TransCanada Corp., that will own TransCanada’s current outstanding common shares.

The company said the change will allow is to circumvent restrictive clauses in some of its debt securities that block certain types of investments, such as joint ventures it doesn’t own outright, while giving it greater flexibility to pursue growth.

That could include a non-controlled joint venture, such as the proposed Mackenzie Valley pipeline. Enbridge Inc., Canada's second pipeline company, has indicated it is interested in becoming involved in the project.

TransCanada is widely identified as the third party in an expected financing deal that will ensure the Aboriginal Pipeline Group can become a partner in the Mackenzie Valley project.

But TransCanada has steadfastly refused to comment on the speculation, although it has confirmed talks have taken place with the Aboriginal Pipeline Group.

However, Frank T’seleie, a director of the APG's executive committee and chief of the K’ashsho Got’ine in Fort Good Hope, told reporters last month that TransCanada will cover the group’s commitment to pay C$70 million towards the preliminary design and regulatory phase.

He said TransCanada, in return for covering preconstruction costs, will “get to build the pipeline.”

Such an arrangement would likely require changes to the memorandum of understanding between the Aboriginal Pipeline Group and the Mackenzie Delta Producers Group.