TC Energy has reached an agreement to sell a 40% stake in the Columbia Gas and Columbia Gulf pipelines to Global Infrastructure Partners for CAD 5.2 billion in cash. The sale will boost TC Energy’s balance sheet and align with the company’s strategy to divest more than CAD 5 billion in assets by year-end.
Joint Venture and Investment
The sale will establish a new joint venture between TC Energy and Global Infrastructure Partners, with TC Energy continuing to manage the operation of the pipelines. Both companies will collaborate on maintenance, modernization, and expansion projects. Global Infrastructure Partners will contribute its 40% share, estimated to exceed CAD 1.3 billion annually over the next three years.
Strengthening the Balance Sheet
By divesting assets and generating additional capital through this transaction, TC Energy aims to reinforce its financial position. The company plans to invest CAD 6 billion in projects in 2021 and expects annual net capital spending of CAD 6-7 billion after 2024.
Key Pipeline Infrastructure
The Columbia Gas and Columbia Gulf pipelines form a vast network spanning over 15,000 miles across North America. These pipelines play a crucial role in meeting daily U.S. natural gas demand, including supplying approximately 20% of the country’s liquefied natural gas exports.
Closure of the Deal
The agreement with Global Infrastructure Partners is anticipated to conclude before the end of this year.
Robb M. Stewart contributed to this report.