TC Energy Selling Prince Rupert Gas Transmission To Nisga’a Nation And Western LNG

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TC Energy Corporation has entered into a binding letter agreement with Nisga’a Nation and Western LNG to sell Prince Rupert Gas Transmission Holdings Ltd. and the limited partnership interests in Prince Rupert Gas Transmission Limited Partnership.

PRGT is a wholly owned subsidiary of TC Energy and the developer of a natural gas pipeline project in British Columbia and potential delivery corridor that would "further unlock Canada as a secure, affordable and sustainable source of LNG."

This proposed project is a 900 kilometre natural gas pipeline running from Hudson’s Hope to Lelu Island, near Prince Rupert. The pipeline route would include both terrestrial and marine sections and would have a proposed capacity of 2-3.6 bcf/d.

TC Energy expects to sell $3 billion or more in assets in 2024.

The company announced a deal earlier this month to sell the Portland Natural Gas Transmission System (PNGTS) to BlackRock.

TC Energy’s strategic priorities are focused on staying within its $6 to $7 billion annual net capital expenditure limit, post-2024, maximizing the value of its assets and further enhancing the strength and flexibility of its balance sheet. This agreement fits with those priorities and more.

“We are pleased to see this important project move forward while remaining firm on our commitment to our strategic priorities,” said François Poirier, president and CEO, TC Energy. “This is an important agreement that will see Indigenous co-ownership and development of an integrated LNG project.

“Enabling LNG development in British Columbia is good for Indigenous communities, our customers, supports the long-term growth of the WCSB and global emissions reduction through the export of responsibly produced Canadian natural gas.”

As part of the letter agreement, TC Energy has committed to provide transition services, on a reimbursable basis, to facilitate the seamless transition of the pipeline project and support development work planned for this year.

Subject to the execution of definitive agreements and customary closing conditions, the transaction is expected to close in the second quarter of 2024.

Initial proceeds from the transaction are not expected to be material to TC Energy, with the potential to receive additional payments contingent upon the project achieving final investment decision and commercial operation.

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