TransCanada sells US pipeline stakes to affiliate

TransCanada Corp said on Tuesday it will sell interests in two major US gas pipelines to its affiliated partnership for $605 million to help fund its capital spending. TransCanada, the country's largest oil and gas pipeline operator, said TC Pipelines LP will get 25 per cent of both Gas Transmission Northwest LLC and Bison Pipeline LLC.

The price includes $81 million, or one quarter, of GTN's debt. TransCanada owns 38.2 per cent of TC Pipelines. The move allows TransCanada to help fund its new projects without going to the market to issue new equity, Chief Executive Russ Girling said in a statement. GTN is a 2,178 km (1,353 mile) pipeline that moves Western Canadian and US Rockies gas to markets in Washington, Oregon and California. Bison is a new 484 km (303 mile) line which carries gas to the Northern Border pipeline system in the US Midwest from the Rocky Mountain region.