Calgary-based TC Energy selling 65% equity interest in B.C. Coastal GasLink Pipeline Project

CALGARY – TC Energy is selling 65 per cent equity interest in the Coastal GasLink Pipeline Project that will cost about $6.6 billion to build 670 kilometres of natural gas pipeline and facilities in B.C.

Once completed, the pipeline will have an initial capacity of 2.1 billion cubic feet per day and connect the natural gas supply from Dawson Creek, B.C. area to the $40-billion liquefied natural gas (LNG) export facility in Kitimat, B.C.

“The partial monetization of Coastal GasLink advances our ongoing efforts to prudently fund our $30 billion secured capital program,” said Russ Girling, TC Energy President and Chief Executive Officer.

KKR, a global investment firm, has agreed to acquire, alongside Alberta Investment Management Corp., 65 per cent equity interest in the Coastal GasLink Pipeline Project from TC Energy.

TC Energy also expects that Coastal GasLink will enter into a secured project financing construction credit facility with a syndicate of banks to fund up to 80 per cent of the project during construction. Both transactions are expected to close in the first half of 2020.

TC Energy said it’s committed to working with the 20 First Nations that have executed agreements with Coastal GasLink to provide them with an opportunity to invest in the project. As a result, in conjunction with this sale, TC Energy will give the First Nations an option to acquire a 10 per cent equity interest in Coastal GasLink on similar terms.

-TC Energy map

-Chevron photo

-jpenrose file photo

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