CALGARY, Alberta - TC Energy (NYSE:TRP) Corporation (TSX, NYSE: TRP), a major North American energy company, has entered into a binding agreement to sell its shares in Prince Rupert Gas Transmission Holdings Ltd. and the limited partnership interests in Prince Rupert Gas Transmission Limited Partnership (PRGT) to the Nisga'a Nation and Western LNG. PRGT, a subsidiary of TC Energy, is developing a natural gas pipeline project in British Columbia.
The transaction aligns with TC Energy's strategic priorities to maintain its annual net capital expenditure within $6 to $7 billion post-2024, maximize asset value, and strengthen its balance sheet. This deal also underscores the company's commitment to Indigenous co-ownership in energy projects. François Poirier, President and CEO of TC Energy, highlighted the benefits for Indigenous communities, customers, and the Western Canadian Sedimentary Basin (WCSB), as well as the global emissions reduction through Canadian natural gas exports.
The agreement includes TC Energy providing transition services to ensure a smooth handover of the pipeline project, with development work scheduled for this year. The completion of the sale, subject to definitive agreements and customary closing conditions, is anticipated in the second quarter of 2024. Initial proceeds from the sale are not expected to be significant for TC Energy, but the company may receive additional payments contingent on the project's final investment decision and commercial operation.
TC Energy operates with a team of over 7,000, focusing on the safe transportation, generation, and storage of energy across North America. The company's shares are traded on both the Toronto and New York stock exchanges under the symbol TRP.
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