TC Energy to sell natural gas pipeline system
Published by Isabel Stagg,
Editorial Assistant
World Pipelines,
TC Energy said on Monday 4 March, 2024, it has agreed to sell Portland Natural Gas Transmission System (PNGTS) to a BlackRock-managed fund and Morgan Stanley Infrastructure Partners for US$1.14 billion as part of its ongoing efforts to reduce debt and fund investments.
The Calgary, Alberta-based company, best known for its Keystone oil pipeline, is undergoing an overhaul and had said last year that it would spin off its liquids business to focus on transporting natural gas.
The sale by TC Energy and partner Energir LP to BlackRock’s diversified infrastructure business and investment funds managed by Morgan Stanley Infrastructure Partners includes the assumption of US$250 million in debt. TC Energy said on Monday 4 March, 2024, it will reap pretax cash equity proceeds of about CAN$740 million (US$545 million).
BlackRock is working to become a player in the expanding market for alternative assets, snapping up Global Infrastructure Partners for about US$12.5 billion and investing US$500 million in an arm of Canadian Solar Inc. just this year. For TC Energy, the sale moves it closer to achieving a goal of selling CAN$3 billion in assets this year to reduce its debt.
The Portland Natural Gas Transmission System consists of 295 miles (475 km) of natural gas pipelines in northern New England and Atlantic Canada.
Barclays provided financial advice to TC Energy and Energir on the sale. Bracewell LLP was the legal adviser to TC Energy.
Read the article online at: https://www.worldpipelines.com/business-news/05032024/tc-energy-to-sell-natural-gas-pipeline-system/
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