Spain’s Iberdrola has recently announced that it has decided to sell three United States Gas utilities for $1.3 billion to lift up funds for construction of a transmission line joining New England and Canada.

As per the statement released by the Spanish electricity maker, Connecticut Natural Gas Corp., Southern Connecticut Gas Co. and Berkshire Gas Co. are being sold to UIL Holdings Corporation, the Connecticut-based parent company of United Illuminating Company.

The three gas utilities serve around 369,000 clients in Connecticut and Massachusetts, distributing approximately 1.6 billion cubic meters of natural gas annually.

The company further added that the agreement, which is subject to regulatory sanction, falls in the context of the Group’s non-strategic asset divestment plan.

Further, the sources also added that the project in Maine will cost $1.4 billion.

Meanwhile, the company said in a release, “The project, which recently received approval from the Maine Public Utility Commission (MPUC), will benefit 7 million New England consumers, including 600,000 of CMP.”

On the other hand, talking to media, the chairman Ignacio Galan said, “The support given by federal and state public officials to this important project will serve to strengthen the already close ties between our company and the United States.”