TC Energy in C$5.2 Billion Sale of 40% Stake in Columbia Gas, Columbia Gulf Systems
July 24 2023 - 8:43AM
Dow Jones News
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)
Copyright (c) 2023 Dow Jones & Company, Inc.
TC Energy (NYSE:TRP)
Historical Stock Chart
From Jul 2024 to Aug 2024
TC Energy (NYSE:TRP)
Historical Stock Chart
From Aug 2023 to Aug 2024