Blog Post

TC Energy to sell 40% interest in Columbia Gas and Columbia Gulf pipelines

Jul 24, 2023
  • Today TC Energy announced a partnership with Global Infrastructure Partners (GIP) through a $5.2 billion sale of a 40% equity interest in Columbia Gas Transmission, LLC (Columbia Gas) and Columbia Gulf Transmission, LLC (Columbia Gulf).
  • The Columbia Gas and Columbia Gulf pipelines cover over 15,000 miles and are critical to the U.S. natural gas supply, providing around 20% of U.S. LNG export supply.
  • The transaction greatly accelerates TC Energy's deleveraging and achieves a key 2023 strategic priority.
  • GIP, one of the world's leading infrastructure investors, will partner with TC Energy to fund annual maintenance, modernization, and sanctioned growth capital.
  • The total proceeds from the transaction are expected to be $5.2 billion CAN (US$3.9 billion), to be paid at closing.
  • TC Energy will continue operating the systems while jointly investing with GIP in annual maintenance and modernization to enhance system capacity and reliability.
  • The joint venture aims to leverage the combined assets and capabilities of TC Energy and GIP to serve the growing market need for cleaner fuels, energy security, and affordability.
  • The transaction is set to close in Q4 2023, and involves a recapitalization and debt restructuring of related entities by TC Energy. TD Securities Inc. and Citi have provided capital commitments with respect to expected bank financing.
  • As part of the deal, Columbia Pipeline Group, Inc. will contribute all of its equity interests in Columbia Gas and Columbia Gulf to a newly formed entity, which will be held by TC Energy and GIP.

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