TC Energy Corp. is selling 40 percent 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 said in a press release that it will continue to operate the pipelines while both companies will jointly fund annual maintenance, modernization and growth to increase capacity and reliability.
Global Infrastructure Partners’ share of capital expenditures is expected to average more than $1.3 billion per year over the next three years.
The pipelines stretch more than 15,000 miles (24,000 km) across North America and supply a significant portion of daily US natural gas needs, including about 20 percent of US export supply of liquefied natural gas (LNG).
François Poirier, President and CEO of TC Energy, says the sale is an “important milestone” in the achievement of the company’s strategic priorities for 2023, which include divesting more than $5 billion in assets by the end of the year.
He adds that the partnership with Global Infrastructure Partners will help TC Energy work toward the energy transition while improving its bottom line.
This report from The Canadian Press was first published on July 24, 2023.
Companies in this story: (TSX:TRP)
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