NEWS
03/10/2016 08:11 EST | Updated 03/11/2017 00:12 EST

TransCanada confirms talks about potential deal after U.S. report

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 (TSX:TRP) already vast natural gas pipeline network.

Columbia Pipeline owns more than 24,000 kilometres of gas pipelines in the U.S.