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

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

In this handout photo provided by the Philippine Red Cross, families stay at a temporary evacuation center at Catanduanes province, eastern Philippines, Sunday, Nov. 1, 2020, as Typhoon Goni hits the country. Families living near coastal towns have moved to evacuation centers as the strong typhoon makes landfall. (Philippine Red Cross via AP)
Okanagan community group organizes fundraiser for typhoon-hit Philippines

Over two million people have been affected by flooding, with about 500,000 forced to leave homes

Masks are now officially mandatory in all City of Campbell River facilities. (Black Press File Photo)
Interior Health reports 49 new COVID-19 cases overnight

302 cases remain active; two in hospital

Representatives of Vernon Rotary Clubs, starting left: Angela Yablonski (Vernon Rotary), Dustin Stadnyk (Kalamalka Rotary), and Michael Wardlow (Silver Star Rotary) present the proceeds from fall fundraising to Anna Dawyd and Laurie Postill (Friends of Okanagan Rail Trail) to help create the Northern Gateway to Okanagan Rail Trail. (Contributed)
Rail Trail boosted by North Okanagan Rotary Clubs

More than $7,400 raised to develop gateway at Kilometre Zero

O’Rourkes Peak Cellars is located in Lake Country, B.C. (Contributed)
Lake Country winery temporarily closes due to possible COVID-19 exposure

The establishment plans to reopen on Dec. 4 after a deep clean

BC NDP’s Harwinder Sandhu was officially sworn in as MLA for Vernon-Monashee Tuesday, Nov. 24, 2020. (Contributed)
‘I’m truly grateful’: Vernon-Monashee MLA officially sworn in

BC NDP Harwinder Sandhu was officially elected Sunday, Nov. 8 after mail-in ballots were counted

Provincial health officer Dr. Bonnie Henry updates B.C.’s COVID-19 situation at the B.C. legislature, Nov. 23, 2020. (B.C. government)
B.C. daily COVID-19 cases hits record 941 on Tuesday

Further restrictions on indoor exercise take effect

(Pixabay.com)
Man, 28, warned by Kootenay police to stop asking people to marry him

A woman initially reported the incident to police before they discovered others had been popped the question

Winston Blackmore (left) and James Oler (right) were sentenced on separate charges of polygamy this week in Cranbrook Supreme Court.
No more charges expected in Bountiful investigation, special prosecutor says

Special prosecutor says mandate has ended following review of evidence from Bountiful investigations

(Phil McLachlan - Capital News)
Garage in Kelowna burns to the ground, blaze deemed suspicious

Fire crews responded to the scene just after 4:30 p.m.

(Ashley Wadhwani/Black Press Media)
Refuse to follow B.C.’s mask mandate? Face a $230 fine

Masks are now required to be worn by all British Columbians, 12 years and older

(Ty Hainsworth / Facebook)
No injuries after fire rips through South Okanagan fruit stand

A fruit stand caught fire Tuesday afternoon, closing Highway 97 for two hours

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Damien Smith, with father Thomas Smith, is “frozen” with joy as he watches a special message Deadpool star Ryan Reynolds recorded for Damien’s 9th birthday on Tuesday, Nov. 24, 2020. (Contributed)
Shuswap boy celebrates 9th birthday with family, community and Ryan Reynolds

People from around the world send birthday cards showing young Canoe resident he’s not alone

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Most Read