TC Energy sells 40% stake in Columbia gas pipeline system for $5.2 billion - Financial Post

TC Energy sells 40% stake in Columbia gas pipeline system | Financial Post

GIP will also contribute $1.3 billion a year for three years to capital expenditures

Article content

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).

Article content

tap here to see other videos from our team.

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.

Article content

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.

Recommended from Editorial

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 about $2, or 3.8 per cent, by noon on July 24. It’s down around seven per cent so far this year.

Article content

Comments

Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.