TC Energy to Sell Majority Stake in Coastal GasLink Pipeline

TC Energy Corporation announced Thursday it has agreed to sell 65 percent equity interest in the Coastal GasLink Pipeline Project to private equity group KKR & Co. Inc. and Alberta Investment Management Corporation (AIMCo).

The Coastal GasLink Pipeline includes the construction of 416 miles of pipeline that will connect natural gas supply from Dawson Creek, British Columbia to the LNG Canada liquefaction and export facility being built in Kitimat, British Columbia. Upon completion, it will have an initial capacity of 2.1 billion cubic feet per day.

TC Energy said it stands to have a gain of C$600 million after taxes once the transaction closes.

“The partial monetization of Coastal GasLink advances our ongoing efforts to prudently fund our $30 billion secured capital program while maximizing value for our shareholders,” TC Energy CEO Russ Girling said in a company statement. “We look forward to establishing a long-term relationship with KKR and AIMCo as we advance this critical energy infrastructure project.”

TC Energy said it will give the 20 First Nations (indigenous people in Canada who live along the coast of the pipeline) the option to acquire a 10 percent equity interest in Coastal GasLink. All 20 First Nations have signed project agreements for the pipeline.

Upon transaction completion, TC Energy will hold a 35 percent limited partnership equity interest in Coastal GasLink. The transaction is expected to close in the first half of 2020.

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