TC Energy Corp. is selling 40 per cent of its Columbia Gas Transmission and Columbia Gulf Transmission systems to New York City-based Global Infrastructure Partners for $5.2 billion.
The Calgary-based company says in a press release it will continue to operate the pipelines, while both companies will jointly fund annual maintenance, modernization and growth to further capacity and reliability.
It says it expects Global Infrastructure Partners’ share of capital expenditures to average more than $1.3 billion annually over the next three years.
The pipelines span more than 24,000 kilometres across North America, delivering a substantial portion of daily U.S. natural gas demand, including approximately 20 per cent of U.S. liquefied natural gas (LNG) export supply.
TC Energy president and CEO François Poirier says the sale marks a “major milestone” in achieving the company’s 2023 strategic priorities, which includes divesting more than $5 billion in assets by the end of the year.
He adds the partnership with Global Infrastructure Partners will help TC Energy work toward the energy transition while improving its balance sheet.
This report by The Canadian Press was first published July 24, 2023.
Companies in this story: (TSX:TRP)
The Canadian Press