PNGTS is a 474 km high-capacity, high-pressure interstate natural gas pipeline which connects with the TransQu̩bec and Maritimes Pipeline at the Canadian border near East Hereford, Qu̩bec, and delivers natural gas to customers in the US northeast.
It shares facilities with the Maritimes and Northeast Pipeline from Westbrook, Maine, to a connection with the Tennessee Gas Pipeline System near Boston, Massachusetts.
After completion of the transaction, TransCanada will continue to hold a direct 11.8 per cent interest in PNGTS.
The sale is expected to close at the end of 2015, upon satisfaction of closing conditions.
The US$223 million transaction is comprised of US$188 million in cash together with the assumption of a proportionate share of PNGTS debt in the amount of US$35 million.
“The PNGTS transaction is a continuation of our strategy to drop down the remainder of TransCanada’s US natural gas pipeline assets to the TC PipeLines partnership,” said TransCanada President and Chief Executive Officer Russ Girling.