Feb 27 (Reuters) - TransCanada Corp said it has offered to sell stakes in two natural gas pipelines that serve the U.S. Northeast to TC PipeLines LP, U.S.-based master limited partnership in which it holds a 27 percent stake.
TransCanada said it would sell its 49.3 percent stake in the Iroquois gas transmission system and the remaining 11.8 percent stake it holds in the Portland natural gas transmission system.
Financial terms of the deal were not disclosed.
“This offer demonstrates the meaningful role that TC PipeLines, LP can fulfill in funding a portion of our C$23 billion near-term capital program,” said TransCanada Chief Executive Russ Girling said in a statement.
TransCanada had sold a 49.9 percent stake in the Portland pipeline to TC PipeLines in January 2016.
“... We believe this investment will further strengthen our cash flows and our ability to increase our quarterly distributions this year in line with recent increases,” Brandon Anderson, president of TC PipeLines GP Inc, said in a statement.
TC PipeLines said the offer was subject to approval by its board of directors.
The Iroquois pipeline is jointly operated by TransCanada and Dominion Resources Inc and extends from the TransCanada Mainline system at the U.S. border near New York to markets in the U.S. Northeast. The Portland pipeline connects with the TransQuebec and Maritimes pipelines at the Canadian border and shares facilities with the Maritimes and Northeast Pipeline from Westbrook, Maine to a connection with the Tennessee gas system near Boston. (Reporting by John Benny in Bengaluru; Editing by Savio D’Souza)