TC Energy sells 40% stake in Columbia gas pipeline system for $5.2 billion
GIP will also contribute $1.3 billion a year for three years to capital expenditures
Canadian pipeline giant TC Energy Corp. is selling a 40-per-cent stake in its Columbia Gas Transmission and Columbia Gulf Transmission pipelines for $5.2 billion to Global Infrastructure Partners (GIP).
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TC Energy sells 40% stake in Columbia gas pipeline system for $5.2 billion Back to video
TC Energy said on July 24 that it will continue to operate the systems, but it will jointly invest in annual maintenance, modernization and growth with GIP.
The infrastructure company’s 40-per-cent share of capital expenditures is expected to average more than $1.3 billion a year for the next three years.
Calgary-based TC Energy, which also owns the Keystone oil pipeline, had said it plans to sell assets this year to cut its debt and fund other projects such as the Coastal GasLink pipeline in British Columbia, which is facing cost overruns.
“Today’s announcement represents a major milestone in achieving our 2023 strategic priorities,” TC Energy’s chief executive François Poirier said in a statement on July 24. “To date, we have advanced our deleveraging goals by delivering on our $5-billion-plus asset divestiture program ahead of our year-end target, while maximizing the value of our assets and safely executing major projects, such as Coastal GasLink and Southeast Gateway.”
The Columbia Gas and Columbia Gulf pipelines span more than 15,000 miles and deliver a major portion of the United States’ natural gas, including about 20 per cent of the U.S. liquified natural gas (LNG) export supply, the company said.
TC Energy’s stock declined $1.68, or about 3.1 per cent, by noon on July 24. It’s down around 6.3 per cent so far this year.
