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TC PipeLines, LP Acquires Additional Interest In Northern Border Pipeline

Posted on: Tuesday, 4 April 2006, 06:00 CDT

By Anonymous

TC PipeLines, LP has entered into an agreement with Northern Border Partners, L.P. to acquire an additional 20% genera] partnership interest in Northern Border Pipeline Company (NBPL). for $300 million plus up to $10 million in transaction costs payable to a subsidiary of TransCanada Corporation (TransCanada). The Partnership will also indirectly assume approximately $120 million of debt of NBPL. On closing, the Partnership's interest in NBPL will increase to 50% from 30%. Concurrent with this transaction, TransCanada will sell its 17.5% general partner interest in Northern Border Partners, L.P. to a subsidiary of ONEOK, Inc. (ONEOK) for a net payment of $30 million subject to certain closing adjustments. In early 2007 a subsidiary of TransCanada will become the operator of NBPL which is currently operated by Northern Plains Natural Gas Company, LLC, a subsidiary of ONEOK.

"Northern Border Pipeline is a key link in the transportation of western Canadian natural gas supply from the Alberta Hub to the growing U.S. Midwest market, including the Chicago market. The Alberta Hub is one of the largest natural gas hubs in North America and is expected to grow as proposed projects to bring northern frontier natural gas to market are developed," said Ron Turner, president and CEO of the general partner, TC PipeLines GP, Inc. Copyright Oildom Publishing Company of Texas, Inc. Mar 2006

Source: Pipeline & Gas Journal

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