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CALGARY — TC Energy Corp. and its partner have signed a deal to sell the Portland Natural Gas Transmission System (PNGTS) for US$1.14 billion including the assumption of US$250 million in debt.
The buyer is BlackRock Inc., through a fund managed by its diversified infrastructure business, and investment funds managed by Morgan Stanley Infrastructure Partners.
TC Energy holds a 61.7 per cent stake in PNGTS, while a subsidiary of Energir LP owns 38.3 per cent.
“Today’s announcement represents continued progress toward achieving our 2024 strategic priority of enhancing our balance sheet strength by delivering approximately $3 billion in asset divestitures,” Francois Poirier, chief executive of TC Energy, said in a press release.
Poirier described PNGTS as a “non-core asset,” adding the sale represented “a unique opportunity to support our … deleveraging priorities.”
He said that the company expects to announce further asset sales during the year.
PNGTS is a 475-kilometre natural gas pipeline system that serves the upper New England and Atlantic Canada markets.
It receives natural gas from the Trans Quebec and Maritimes Pipeline via the Canadian Mainline.
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The sale is expected to close in mid-2024, subject to regulatory approvals and customary closing conditions.
Funds from the sale will be split to reflect the ownership share between TC Energy and Energir.
— With files from Finanical Post
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