Coastal GasLink pipe sections on the ground at the Port of Stewart last week. (Coastal GasLink photo)

TC Energy to sell a 65% equity interest in Coastal GasLink pipeline

Once deal is done, Coastal GasLink will secure financing with a syndicate of banks

The company behind the $6.2-billion Coastal GasLink pipeline in British Columbia says it’s made a deal to sell a 65 per cent equity interest in the project.

TC Energy Corp. says in a news release that it has entered into an agreement for the sale to KKR and Alberta Investment Management Corporation (AIMCo), on behalf of certain AIMCo clients.

The pipeline’s planned 670-kilometre route from northeastern B.C. to LNG Canada’s export terminal in Kitimat is intended to deliver natural gas to the $40-billion LNG Canada project.

TC Energy also says it expects that once the deal is done, Coastal GasLink will secure financing with a syndicate of banks in order to fund up to 80 per cent of the project during construction.

It says both transactions are expected to close in the first half of 2020, subject to customary regulatory approvals and consents, including the consent of LNG Canada.

ALSO READ: Coastal GasLink receives first delivery of pipe sections

After the deal closes, TC Energy says it will hold a 35 per cent limited partnership equity interest in Coastal GasLink and will be contracted by the limited partnership to construct and operate the pipeline.

“We look forward to establishing a long-term relationship with KKR and AIMCo as we advance this critical energy infrastructure project,” TC Energy president and CEO Russ Girling says in a news release Thursday.

“We remain fully committed to the project and will continue to construct, deliver and operate the pipeline on behalf of the partnership.”

TC Energy — formerly TransCanada Corp. — announced in 2018 that it intended to reduce its interest in the Coastal GasLink pipeline project, and announced last January that it hired RBC to help it sell as much as a 75 per cent stake in the project.

Construction of the natural gas pipeline — a key part of the multibillion dollar LNG Canada development in Kitimat — led to protests and arrests, although 14 charges were eventually dropped.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Snuneymuxw, province sign land transfer agreement that includes parts of Mount Benson

First Nation sees economic development opportunities through forestry partnerships

Islands Trust Conservancy gets funding for protection of at-risk species

Conservancy manages habitat for more than 25 plant and animal species at risk

Nanaimo’s Western Edge Theatre returns to the stage in Port Theatre debut

Theatre group presents ‘2 Across,’ described as a ‘middle-aged romantic comedy’

Purebred breeders go for a walk in Nanaimo to show off their dogs

Purebred dog breeders sometimes get a bad rap, says event organizer

City reviewing plans for huge Sandstone project in south Nanaimo

Seacliff Properties says it’s been told to be ready for a public hearing this fall

Quirky Canadian comedy ‘Schitt’s Creek’ takes Emmys by storm with comedy sweep

Toronto-raised Daniel Levy and Ottawa-born Annie Murphy both got supporting actor nods

B.C.’s Chase Claypool catches first NFL touchdown pass

Abbotsford grad establishes new record for longest scrimmage TD by a Canadian

B.C. has highest number of active COVID-19 cases per capita, federal data shows

B.C. currently has 1,803 active cases after weeks of COVID-19 spikes in the province

181 days gone: Family continues to look for man last seen in RCMP custody 6 months ago

Brandon Sakebow’s last known location was leaving Mission RCMP cell, police say; family has doubts

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

B.C. unveils new cannabis sales programs to help small, Indigenous growers

Government did not say how it will define small producers, but says nurseries will be included in the policy

B.C. transportation minister will not seek re-election

Claire Trevena has held the position since 2017

Body discovered floating in water near Lasqueti Island

JRCC reports personnel aboard fishing vessel made the find

Most Read