Energy-giant says it will use proceeds from sale to fund capital spending.
CALGARY — TransCanada Corp. has signed a deal to sell its remaining 30% stake in Bison Pipeline LLC to its master limited partnership, TC PipeLines LP, for US$215 million.
The pipeline company holds a 28% interest in TC PipeLines LP, which owns US natural gas pipelines and related assets.
Through the sale of the operations to the partnership, TransCanada is able to raise cash to fund its own capital spending.
“The Bison transaction advances our previously stated commitment to sell the remainder of TransCanada’s US natural gas pipeline assets to the partnership,” TransCanada president and chief executive Russ Girling said in a statement.
“As TransCanada continues to progress our unprecedented $38 billion capital program, we intend to drop down the remainder of those assets on a more sizable, frequent basis over the coming quarters and years.”
Bison is a 487-kilometre natural gas pipeline in the US Rocky Mountains.
© 2014 The Canadian Press