TransCanada good to go with $13 billion Columbia Pipeline acquisition
TransCanada will remain focused on advancing a combined $25 billion of near-term growth projects.
Upon completion of the acquisition, Columbia will be an indirect wholly-owned subsidiary of TransCanada.
"This acquisition is a tremendous opportunity to obtain a competitively-positioned, growing network of regulated natural gas pipelines and storage assets in the heart of the Marcellus and Utica basins," said Russ Girling, TransCanada's president and chief executive officer.
"With this transaction, we have further diversified our suite of premium assets, added to our near-term growth portfolio and created one of North America's largest regulated natural gas transmission and storage businesses, linking the continent's most prolific natural gas supply basins to its most attractive markets."
The Marcellus and Utica basins - the fastest-growing natural gas supply region in North America - has the lowest development and production costs along with the highest growth prospects of any large basin on the continent.
Upon completion of the acquisition, TransCanada will remain focused on advancing a combined $25 billion of secured, near-term growth projects that are expected to deliver significant customer and shareholder value as they enter service, largely in the 2016 to 2018 timeframe.
This growth supports and may augment TransCanada's eight to 10 per cent expected annual dividend growth rate through 2020. ■