TC Energy enters agreement to sell Columbia Midstream assets
Published by Aimee Knight,
Editorial Assistant
World Pipelines,
TC Energy Corporation has announced that it has entered into an agreement to sell its U.S. midstream assets held by its subsidiary, Columbia Midstream Group, to UGI Energy Services, LLC, a subsidiary of UGI Corporation, for approximately US$1.275 billion (CAN$1.7 billion). The transaction is expected to close in the third quarter of 2019 subject to closing adjustments and customary regulatory approvals.
Columbia Midstream Group, which operates in the Appalachian Basin, owns four natural gas gathering systems and an interest in a company with gathering, processing and liquids assets. These assets connect production to markets throughout western Pennsylvania, eastern Ohio and northern West Virginia. This sale does not include any interest in Columbia Energy Ventures Company (CEVCO), which is TC Energy’s minerals business in the Appalachian basin.
“The sale of Columbia Midstream Group advances our ongoing efforts to prudently fund our industry-leading portfolio of high-quality natural gas pipeline, liquids pipelines and power generation projects, while maximising value for our shareholders,” said Russ Girling, TC Energy President and Chief Executive Officer.
“Along with the sale of Coolidge and partial monetisation of Northern Courier we now expect to realise approximately CAN$3.4 billion of proceeds from announced portfolio management activities in 2019. When combined with our significant and growing cash flow, access to capital markets and potential additional portfolio management activities, we are well-positioned to fund our CAN$30 billion secured capital programme in a manner consistent with achieving targeted credit metrics in 2019 and thereafter.”
TC Energy continues to own and operate its significant network of interstate pipelines in the Appalachian Basin with its Columbia Gas Transmission system, which transports low-cost natural gas supply from the production region to markets in the US, including LNG export facilities that serve international markets.
Wells Fargo Securities, LLC acted as exclusive financial advisor to TC Energy on the transaction.
Read the article online at: https://www.worldpipelines.com/business-news/03072019/tc-energy-enters-agreement-to-sell-columbia-midstream-assets/
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