CALGARY—TransCanada confirmed it is in talks about a potential deal following a media report that the Calgary-based pipeline giant was discussing a takeover of a U.S. natural gas pipeline operator.
The Wall Street Journal, citing anonymous sources it said were familiar with the matter, reported that a deal with Columbia Pipeline Group Inc. could be worth more than US$10 billion.
In a brief statement, TransCanada said talks are underway with an unidentified party, but there’s no guarantee they will continue or that a deal may result.
It said it won’t make any further comment until it’s appropriate—if an agreement is reached.
TransCanada’s efforts to build new oil pipelines have faced major hurdles, with the Obama administration nixing its cross-border Keystone XL pipeline in November and its Alberta-to-Atlantic Energy East proposal facing mounting environmental opposition.
A deal with Columbia Pipeline, should it come to fruition, would add to TransCanada’s already vast natural gas pipeline network.
Columbia Pipeline owns more than 24,000 kilometres of gas pipelines in the U.S.