TransCanada acquires rival
CALGARY, March 18, 2016 – TransCanada Corporation late on Thursday announced it would be acquiring Colombia Pipeline Group for the sum of USD 10.2 billion. The agreement will also see the company assume some USD 2.8 billion in debt, pushing the value of the deal to USD 13 billion.
TransCanada owns more than 52,000 km in gas pipelines, and derived some 48% of its 2015 revenue from gas transport. The Colombia Pipeline Group deal will see the TransCanada add some 24,000 km to its network of gas conduits. The company has a gas storage capacity of 10.4 bcm (368 bcf).
Russ Girling, TransCanada’s president and CEO, said that “the acquisition represents a rare opportunity to invest in an extensive, competitively-positioned, growing network of regulated natural gas pipeline and storage assets in the Marcellus and Utica shale gas regions.”
The acquisition of Colombia Pipeline Group marks TransCanada biggest-ever agreement.