TC Energy's $737 Million Indigenous Pipeline Deal Faces Delay

(Reuters) — TC Energy's C$1 billion ($736.92 million) deal to sell a minority stake in its Canadian natural gas pipeline system to a consortium of Indigenous communities has been delayed due to a transaction structuring issue, the company said on Tuesday.

The Canadian pipeline operator had said earlier this year it would sell a 5.34% stake in the NGTL system and Foothills assets in western Canada to an Indigenous-owned investment partnership, in a move to reduce its debt and finance new investments.

The widely anticipated deal was a key step to achieving the company's C$3 billion asset sale target for 2024.

The NGTL system, which is about 24,400 kilometers (15,150 miles) long, connects most of the natural gas production in western Canada to domestic and export markets.

TC Energy said on Tuesday it remains focused on a deal and would provide material updates as they become available.

($1 = 1.3570 Canadian dollars)

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