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

VIDEO: A message from Mission’s mayor

Pam Alexis asks residents to support local businesses, stay strong during COVID-19 pandemic

Mission developers donate $10,000, challenge others to donate as well

Gary Toor and Jason Tiegen gve the money to Mission Community Services, hope to raise $20,000

You can design a new banner for Mission’s downtown area

Mission Downtown Business Association is presenting its second annual banner design competition

One woman arrested in Abbotsford on Sunday after stabbing

25-year-old man sent to hospital with serious injuries following incident

B.C. firefighters only responding to most life-threatening calls during COVID-19 pandemic

The directive comes after province spoke with paramedics, fire services, according to top doctor

Canadians awake to extra COVID-19 emergency benefit money, fear it’s a mistake

The CRA and federal officials are working to clarify the confusion around payments

Easter Bunny added to B.C.’s list of essential workers

Premier John Horgan authorizes bunny to spread “eggs-ellent cheer” throughout province

COVID-19 self-isolation plan or quarantine, returning B.C. residents told

Premier John Horgan says forms must be filled out by travellers

More than 400 animals have been adopted amid pandemic: B.C. SPCA

People are taking this time of social distancing to find a loyal companion through the animal welfare group

B.C. secures motel, hotel rooms for COVID-19 shelter space

Community centres, rooms reserved for pandemic self-isolation

Sanders drops 2020 bid, leaving Biden as likely nominee

Sanders plans to talk to his supporters later Wednesday

B.C. faith leaders, Horgan discuss need for virtual religious ceremonies

Leaders were open to providing other ways to celebrate during the pandemic

Emergency COVID-19 funding now available for children with special needs

Funding to be used to help support families through uncertain times of pandemic

Most Read