TRP - TC Energy to sell Columbia Gas Columbia Gulf stakes in $3.9B deal

2023-07-24 07:53:13 ET

TC Energy ( NYSE: TRP ) said Monday it agreed to sell a 40% interest in its Columbia Gas Transmission and Columbia Gulf Transmission systems into a new joint venture partnership with Global Infrastructure Partners for C$5.2B (US$3.9B) in cash.

TC Energy ( TRP ) said it will continue to operate the systems, while TC and GIP will jointly invest in annual maintenance, modernization and sanctioned growth capital to further enhance system capacity and reliability.

GIP will fund its 40% share of gross capital expenditures, which are expected to average more than C$1.3B (US$1B) annually over the next three years.

The Columbia Gas and Columbia Gulf pipelines span more than 15K miles across a highly integrated North American natural gas network, delivering a substantial portion of daily U.S. natural gas demand, including ~20% of U.S. liquified natural gas export supply.

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