TC Energy in C$5.2 Billion Sale of 40% Stake in Columbia Gas, Columbia Gulf Systems

By Robb M. Stewart

TC Energy has agreed to sell a stake in the Columbia Gas and Columbia Gulf pipelines that deliver natural gas in the U.S. to Global Infrastructure Partners for 5.2 billion Canadian dollars ($3.93 billion) in cash, strengthening its balance sheet.

The energy company said it will sell a 40% interest in the Columbia Gas Transmission and Columbia Gulf Transmission systems, which will be held in a new joint venture with the New York-based infrastructure investor.

TC Energy said it will continue to operate the systems and the two companies will jointly invest in annual maintenance, modernization and growth of the assets, with Global Infrastructure Partners funding its 40% share which is expected to average more than C$1.3 billion annually over the next three years.

The sale delivers on TC Energy's plans to exit C$5 billion-plus in assets by the end of the year as it seeks to bolster its balance sheet and fund its capital program. TC Energy is targeting placing C$6 billion of projects in service this year and has given the go ahead to net capital spending of C$6 billion to $7 billion annually after 2024.

The Columbia Gas and Columbia Gulf pipelines span more than 15,000 miles of North American natural gas network and deliver a substantial portion of daily U.S. natural gas demand, including about 20% of U.S. liquefied natural gas export supply, TC Energy said.

The deal with Global Infrastructure Partners is expected to close by the end of the year, TC Energy said.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

July 24, 2023 08:28 ET (12:28 GMT)

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