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

Join the Regional District on Instagram Live

The Regional District of Central Okanagan parks interpretive programs are going online

COVID-19: Diabetes Canada donation bins becoming garbage dumps amid pandemic

Diabetes Canada has asked residents to stop overflowing bins with donations and garbage

Okanagan College students receive emergency funding

Funding is available to domestic and Indigenous students from the Ministry of Advanced Education, Skills and Training

Lake Country ceases tourism operations for 2020, Okanagan tourism continues to suffer

The District of Lake Country voted to suspend tourism on March 31

COVID-19: City of Kelowna defers property tax penalty, other city charges until September

The city is deferring interest and penalties to September, for those who need it

Okanagan College grading system critical despite COVID-19 pandemic

On heels of petition penned by student, VP academic says grading system necessary for accurate assessments

Here’s how to talk to people who aren’t taking physical distancing seriously

Approach the conversation with empathy says conflict expert

B.C. clears more acute hospital beds as COVID-19 case growth slows

Province holding about 40% of beds empty for peak still to come

As 500K+ apply for emergency benefit, Trudeau says aid coming for Canadians left behind

Canada Emergency Response Benefit provides $2,000 per month

Spike of visitors to Princeton-area stressing grocery supply chain and healthcare teams

‘We are really not set up to have this many people at this time of year.’ Area H Director Bob Coyne

Summerland to offer mental health webinar

Event will examine ways of coping during COVID-19 pandemic

Van crashes into Kamloops home

Police say the driver went into medical distress before the crash

Salmon Arm Silverbacks remember Humboldt Broncos on anniversary of fatal crash

Sixteen people killed, 13 injured after semi collided with team bus on April 6, 2018

Most Read