Canadian pipeline giant TC Energy Corporation is selling a 40% stake in its Columbia Gas Transmission and Columbia Gulf Transmission for CAN$5.2 billion (US$3.9 billion) to Global Infrastructure Partners (GIP).
TC Energy said in a statement on 24 July that it will continue to operate the systems, but it will jointly invest in annual maintenance, modernisation and growth with GIP.
The infrastructure company’s 40% share of capital expenditures is expected to average more than CAN $1.3 billion a year for the next three years.
Calgary-based TC Energy, which also owns the Keystone oil pipeline, has said it planned to sell assets this year to cut debt and fund other projects such as the Coastal Gas-Link pipeline in British Columbia, which is facing cost overruns.
“Today’s announcement represents a major milestone in achieving our 2023 strategic priorities. To date, we have advanced our deleveraging goals by delivering on our CAN$5+ billion asset divestiture programme ahead of our year-end target, while maximising the value of our assets and safely executing major projects, such as Coastal GasLink and Southeast Gateway,” said TC Energy’s chief executive officer François Poirier on 24 July.
The Columbia Gas and Columbia Gulf pipelines span more than 15 000 miles to deliver a major portion of the United States’ natural gas, including about 20% of the US liquified natural gas (LNG) export supply, the company said in the statement.
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Read the article online at: https://www.worldpipelines.com/business-news/24072023/tc-energy-sells-pipeline-stake-to-gip-for-can52-billion/
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