TC Energy to sell an equity interest in Coastal GasLink pipeline

CALGARY — The company behind the $6.2-billion Coastal GasLink pipeline in British Columbia says it’s made a deal to sell a 65 per cent equity interest in the project.

TC Energy Corp. says in a news release that it has entered into an agreement for the sale to KKR and Alberta Investment Management Corporation (AIMCo), on behalf of certain AIMCo clients.

The pipeline’s planned 670-kilometre route from northeastern B.C. to LNG Canada’s export terminal in Kitimat is intended to deliver natural gas to the $40-billion LNG Canada project.

TC Energy also says it expects that once the deal is done, Coastal GasLink will secure financing with a syndicate of banks in order to fund up to 80 per cent of the project during construction.

It says both transactions are expected to close in the first half of 2020, subject to customary regulatory approvals and consents, including the consent of LNG Canada.

After the deal closes, TC Energy says it will hold a 35 per cent limited partnership equity interest in Coastal GasLink and will be contracted by the limited partnership to construct and operate the pipeline.

“We look forward to establishing a long-term relationship with KKR and AIMCo as we advance this critical energy infrastructure project,” TC Energy president and CEO Russ Girling says in a news release Thursday.

“We remain fully committed to the project and will continue to construct, deliver and operate the pipeline on behalf of the partnership.”

TC Energy — formerly TransCanada Corp. — announced in 2018 that it intended to reduce its interest in the Coastal GasLink pipeline project, and announced last January that it hired RBC to help it sell as much as a 75 per cent stake in the project.

Construction of the natural gas pipeline — a key part of the multibillion dollar LNG Canada development in Kitimat — led to protests and arrests, although 14 charges were eventually dropped.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A young new Canadian holds a flag as she takes part in a citizenship ceremony on Parliament Hill in Ottawa on Wednesday, April 17, 2019. THE CANADIAN PRESS/Sean Kilpatrick
Open arms in an era of closed borders: pandemic-era immigration plan to be released

Backlogs are amassing that could take years to clear up

A sign at a Starbucks Coffee store in south Seattle is shown, Tuesday, Oct. 27, 2020. Starbucks saw faster-than-expected recovery in the U.S. and China in its fiscal fourth quarter, giving it confidence as it heads into the holiday season. (AP Photo/Ted S. Warren)
Prime Minister Justin Trudeau arrives to a press conference during the COVID pandemic in Ottawa on Tuesday, Oct. 13, 2020. More federal financial support is on its way to help Indigenous people and communities cope with the ongoing impact of the COVID-19 pandemic. THE CANADIAN PRESS/Sean Kilpatrick
Feds to unveil more pandemic support for Indigenous communities

Another $650 million to help Indigenous communities

Alberta children whose only symptom of COVID-19 is a runny nose or a sore throat will no longer require mandatory isolation, starting Monday.
477 new COVID-19 cases confirmed in Alberta on Thursday

Changes being made to the COVID-19 symptom list for school-age children

k
Letter to the editor: Kenney should know what he’s taking from handicapped

Re: “Camp for developmentally disabled loses funding,” Oct. 29. Today is a… Continue reading

Alice Kolisnyk, deputy director of the Red Deer Food Bank, says the agency expects an increase in demand as the COVID-19 pandemic continues. Every new subscription to the Red Deer Advocate includes a $50 donation to the food bank. (Photo by BYRON HACKETT/Advocate Staff)
Support the food bank with a subscription to the Red Deer Advocate

The community’s most vulnerable members are always in need of a hand,… Continue reading

Workers at Olymel's Red Deer pork processing plant are among those eligible for a $2-an-hour bonus because of the pandemic.
Red Deer Advocate file photo
Two Olymel workers test positive for COVID-19 in Red Deer

Two workers at Olymel’s pork processing facility in Red Deer have tested… Continue reading

In this file photo, Nicholas Bennett was one of 13 swimmers set to compete for Canada at the Lima 2019 Parapan Am Games this summer. (Swimming Canada photo)
Swimming Canada urges pools to accommodate youth, says can be done safely

Participation of nine and 10-year-olds down 60 per cent

Team Newfoundland and Labrador skip Brad Gushue poses with the Brier Tankard trophy after defeating Team Alberta in the Brier curling final in Kingston, Ont., on Sunday, March 8, 2020. Gushue experienced mixed emotions as he prepared to throw practice stones for the first time this season. THE CANADIAN PRESS/Sean Kilpatrick
Lesbian couple Yi Wang, right, and Yumi Meng pose during a military mass weddings ceremony in Taoyuan city, northern Taiwan, Friday, Oct. 30, 2020. Two lesbian couples tied the knot in a mass ceremony held by Taiwan’s military on Friday in a historic step for the island. Taiwan is the only place in Asia to have legalized gay marriage, passing legislation in this regard in May 2019.(AP Photo/Chiang Ying-ying)
Two same-sex couples in military marry in first for Taiwan

Only place in Asia to have legalized same-sex marriage

Paris Jackson poses for a portrait in Beverly Hills, Calif., on Oct. 27, 2020, to promote her debut solo album “Wilted,” releasing on Nov. 13. Her new single “Let Down” drops Friday, Oct. 30. (AP Photo/Chris Pizzello)
Paris Jackson mines her heartache for solo debut album

11 songs on the concept album ‘Wilted’

Ryan, Falcons avenge earlier loss to Panthers, 25-17

Ryan, Falcons avenge earlier loss to Panthers, 25-17

Most Read