TC Energy Close to Finalizing Stake Sale in 15,000-Mile Natural Gas Pipeline System, Sources Say

(P&GJ) — According to the Financial Post, Calgary-based TC Energy is close to finalizing the sale of a stake in its natural gas pipeline system to Indigenous groups in Western Canada, supported by Alberta’s government.

The Alberta government has conditionally approved a C$1 billion ($726 million) loan guarantee to assist the Indigenous consortium with financing. This consortium includes Indigenous communities from Alberta, British Columbia, and Saskatchewan.

The NGTL System, which spans 24,386 kilometers (15,152 miles), transports natural gas across Canada's western provinces for domestic and export markets. The sale is part of TC Energy’s strategy to reduce debt, following cost overruns on the Coastal GasLink project. Last year, the company exceeded its $5 billion divestiture target by selling a 40% interest in U.S. pipeline networks and is planning to sell an additional $3 billion in assets.

The transaction is expected to be announced on July 30 and finalized by late August, pending legal and regulatory approvals.

A TC Energy spokesperson said that the goal of forming beneficial partnerships with Indigenous communities, allowing them to participate in Canada’s resource economy, according to the Financial Post. Neither TC Energy nor the Alberta Indigenous Opportunities Corp. confirmed details of the deal.

Last year, TC Energy sought approval from the Canada Energy Regulator to facilitate minority ownership of the NGTL system, including by Indigenous groups.

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