TC Energy Nears Stake Sale In NGTL Pipeline To Indigenous Groups: Report

Author: Lekha Gupta | July 24, 2024 11:44am

TC Energy Corporation (NYSE:TRP) shares are trading higher today. The company is reportedly close to selling a stake in its natural gas pipeline system to indigenous communities in Western Canada, with support from Alberta’s government.

A provincial agency has conditionally approved a C$1 billion ($726 million) loan guarantee to help the indigenous consortium finance the purchase, which includes communities from Alberta, British Columbia, and Saskatchewan, reported Bloomberg.

Related: TC Energy’s NGTL Pipeline Faces Pressure Reduction Order Despite Repaired Rupture: Report

The transaction is part of TC Energy’s asset sales strategy to cut debt following significant cost overruns on the Coastal GasLink pipeline.

TC Energy’s NGTL System, a 24,386-kilometer pipeline network, transports natural gas across Alberta and British Columbia for domestic and export markets.

TC Energy plans to announce the transaction on July 30, with closing expected in late August, though legal, financial, and regulatory details are still pending.

Also Read: TC Energy Faces Setback In Pursuit Of NAFTA Damages: Details

Last year, TC Energy surpassed its C$5 billion divestiture goal by selling a 40% stake in the Columbia Gas Transmission and Columbia Gulf Transmission networks in the US.

In June, shareholders of TC Energy gave the green light to create a new energy infrastructure company called South Bow Corp, including assets such as the Keystone oil pipeline.

Investors can gain exposure to the stock via VanEck Energy Income ETF (NYSE:EINC) and IPath Select MLP ETN (BATS:ATMP).

Price Action: TRP shares are up 1.15% at $41.88 at the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Posted In: ATMP EINC TRP