Overseas Ship in TransCanada Pact

The companies team up on big compressed natural gas tankers.
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Overseas Shipholding Group

(OSG) - Get Report

, an energy transportation services provider, said Monday it entered into a strategic partnership agreement with

TransCanada CNG Technologies

, a subsidiary of

TransCanada

(TRP) - Get Report

.

Under the agreement, OSG will own and operate a new type of tanker vessel, capable of moving large quantities of compressed natural gas (CNG). The ships will utilize TransCanada's patented technology for the design, construction and operation of Gas Transport Modules (GTMs) for the transportation of CNG from stranded gas fields throughout the world.

"The CNG venture with TransCanada, one of the world's leading pipeline operators, is a natural extension of our LNG transportation platform and an exciting opportunity to bring new technologies to the marine energy transportation marketplace,'' the company said.

The company's stock rose 38 cents, or 0.6% to $65.28 Monday.

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