TransCanada has agreed to sell its remaining 30% stake in Gas Transmission Northwest (GTN) to its master limited partnership, TC PipeLines, for $446m.

GTN is a 2,178km pipeline that transports natural gas under contracts from the Western Canada Sedimentary Basin and the Rocky Mountains to Washington, Oregon and California.

The transaction is expected to be completed on 1 April 2015.

TransCanada president and CEO Russ Girling said: "This agreement is part of TransCanada’s long-term strategy to drop down our remaining US natural gas pipeline assets to the Partnership on a more sizable and systematic basis.

"Asset sales to the Partnership will provide us with significant cash proceeds to help fund our capital programme and provide visible long term growth for TC PipeLines."

Apart from GTN, TransCanada is also planning to divest its remaining stake in several of the US natural gas pipelines to TC PipeLines.

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The transactions will include 44.5% stake in Iroquois; 61.7% interest in Portland; 100% stake in ANR; and 53.6% interest in Great Lakes.

The assets generated $314m EBITDA in 2014 which is expected to increase to about $450m in 2016.

TransCanada said TC PipeLines is capable of completing drop downs of over $1bn a year.

Through its subsidiaries, TransCanada owns a 28% stake in TC PipeLines, to purchase, and participate in managing US natural gas pipelines and associated assets.

Calgary-based TransCanada operates a network of natural gas pipelines that extend over 68,000km into all major gas supply basins in North America.