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

Abbotsford mosque gets online hate for exhibit on Jesus

Event meant to bring community together gets attacked teaching religous differences

Hail to the chief: Mission names new top firefighter

Mark Goddard is Mission’s new fire chief

Homeless count is coming to the Fraser Valley to help track the numbers

Training Feb. 27 in Chilliwack to help volunteers adopt respectful and compassionate approach

Photos of masked-marijuana-clinic robber released by Abbotsford police

Gunman robbed dispensary for cash and weed, still at large

Woman in Fraser Health region confirmed as sixth COVID-19 case in B.C.

Woman remains in isolation as Fraser Health officials investigate

VIDEO: Abbotsford senior recalls ‘crazy’ decision to grab bear cub from den

Henry Martens – now 96 – says he was lucky to be alive after youthful decision to enter a bear’s den

RCMP clarifies stance on removing officers from Wet’suwet’en territory in northern B.C.

Police say will remove officers only if hereditary chiefs keep road open to pipeline workers

Petition slams Victoria councillor who chastised police after Wetsuweten protest

Ben Isitt calls effort to get him suspended is not a ‘reliable barometer of public opinion’

B.C., Ottawa sign sweeping 30-year deal for northern caribou habitat

West Moberly, Saulteau co-manage new protection on two million acres

PHOTOS: 2020 BC Winter Games kick off in Fort St. John

More than 1,000 of B.C.’s best athletes will be competing over the next three days

Kara-Kata Afrobeat Band coming to Mission

Celebrate Black History Month with a special event planned for Saturday, Feb. 29 at The Railyard

LETTER: Thanks to our first responders

Need to stop complaining about them and offer thanks to them all.

Meet the Wet’suwet’en who want the Coastal GasLink pipeline

Supporters of the pipeline are upset only one side is being heard nationwide

‘Usain Bolt he was not’: B.C. gang police seize drugs, cash after foot chase

‘The man took off running when he saw our officers approaching,’ CFSEU BC says

Most Read